s and how much you despise a deadbeat.

Use a quality looking invoice system!

Third, you need a competent invoicing system. This includes quality invoicing software. Your invoices should be printed on quality letterhead and should always include a number 9 return envelope pre-addressed with your company name and logo on it. Your invoice package should scream out "I MEAN BUSINESS!" and not “Please pay if you get a chance someday!”

Be fast and consistent with your invoicing!

Fourth and very importantly you must send out your invoices immediately if not sooner. Send Statements every 15 days. When your customer’s invoice goes over

Business to Business Collections

Lawsuits should be used as a last resort when attempting to collect money owed. Any lawyer will tell you that a lawsuit is a very inefficient and expensive way to resolve debt issues. You also lose control over many issues because a judge and/or jury will be making the decisions instead of you. The use of a collection agent can also be expensive but their use can keep you in control and in most cases a lot quicker. As amazing as it may sound, most small business owners would rather lose the entire amount owed on a debt rather than giving a collection agent a third (33%) of that debt to collect it. The way I see it is that 67% is a heck of a lot better than 0%. I mean, I actually get excited when one of my accounts goes to collections because I know it will be paid soon. My collection agent is a "Pit Bull" and there is absolutely no one that can handle his constant badgering and harassing. I am talking about Business to Business collections. In most states there are no laws protecting businesses from collection agents like there are for consumers. Therefore they can be forced into paying.

Here are ways to limit the use of a Collection Agent and collect your past due accounts.

Don’t extend credit!

First of all, the best way to prevent the use of a collection agent is to not extend credit in the first place. This can be achieved by explaining to the customer that the terms are COD and asking him or her to either bring a check with them or making sure they have a check on site to give to your service technician. It’s nothing personal and most other small business owners understand the importance of keeping the cash flowing. If you are up front and consistent, asking for a check becomes second nature.

Let your customers know you mean business right out of the gate!

Secondly, if you must extend credit you need to tell them that you expect to be paid as soon as possible and that they shouldn’t wait 30 days. Put “Payable Upon Receipt” on the invoice. Let your customers know right away that you will do everything in your power to collect the debt and that you intend on getting paid. It needs to be clearly spelled out on your job tickets, contracts and invoices. This should also be explained verbally. I always say something like “sorry I couldn’t take your call, but I was on the phone with our collection agent” or “my lawyer” or something to that affect and then I start discussing how I would never leave another small business owner hanging for his/her money. Don’t direct it towards them but discuss the problems that non payment causes and how much you despise a deadbeat.

Use a quality looking invoice system!

Third, you need a competent invoicing system. This includes quality invoicing software. Your invoices should be printed on quality letterhead and should always include a number 9 return envelope pre-addressed with your company name and logo on it. Your invoice package should scream out "I MEAN BUSINESS!" and not “Please pay if you get a chance someday!”

Be fast and consistent with your invoicing!

Fourth and very importantly you must send out your invoices immediately if not sooner. Send Statements every 15 days. When your customer’s invoice goes over 3

t is that 67% is a heck of a lot better than 0%. I mean, I actually get excited when one of my accounts goes to collections because I know it will be paid soon. My collection agent is a "Pit Bull" and there is absolutely no one that can handle his constant badgering and harassing. I am talking about Business to Business collections. In most states there are no laws protecting businesses from collection agents like there are for consumers. Therefore they can be forced into paying.

Here are ways to limit the use of a Collection Agent and collect your past due accounts.

Don’t extend credit!

First of all, the best way to prevent the use of a collection agent is to not extend credit in the first place. This can be achieved by explaining to the customer that the terms are COD and asking him or her to either bring a check with them or making sure they have a check on site to give to your service technician. It’s nothing personal and most other small business owners understand the importance of keeping the cash flowing. If you are up front and consistent, asking for a check becomes second nature.

Let your customers know you mean business right out of the gate!

Secondly, if you must extend credit you need to tell them that you expect to be paid as soon as possible and that they shouldn’t wait 30 days. Put “Payable Upon Receipt” on the invoice. Let your customers know right away that you will do everything in your power to collect the debt and that you intend on getting paid. It needs to be clearly spelled out on your job tickets, contracts and invoices. This should also be explained verbally. I always say something like “sorry I couldn’t take your call, but I was on the phone with our collection agent” or “my lawyer” or something to that affect and then I start discussing how I would never leave another small business owner hanging for his/her money. Don’t direct it towards them but discuss the problems that non payment causes and how much you despise a deadbeat.

Use a quality looking invoice system!

Third, you need a competent invoicing system. This includes quality invoicing software. Your invoices should be printed on quality letterhead and should always include a number 9 return envelope pre-addressed with your company name and logo on it. Your invoice package should scream out "I MEAN BUSINESS!" and not “Please pay if you get a chance someday!”

Be fast and consistent with your invoicing!

Fourth and very importantly you must send out your invoices immediately if not sooner. Send Statements every 15 days. When your customer’s invoice goes over

f a collection agent is to not extend credit in the first place. This can be achieved by explaining to the customer that the terms are COD and asking him or her to either bring a check with them or making sure they have a check on site to give to your service technician. It’s nothing personal and most other small business owners understand the importance of keeping the cash flowing. If you are up front and consistent, asking for a check becomes second nature.

Let your customers know you mean business right out of the gate!

Secondly, if you must extend credit you need to tell them that you expect to be paid as soon as possible and that they shouldn’t wait 30 days. Put “Payable Upon Receipt” on the invoice. Let your customers know right away that you will do everything in your power to collect the debt and that you intend on getting paid. It needs to be clearly spelled out on your job tickets, contracts and invoices. This should also be explained verbally. I always say something like “sorry I couldn’t take your call, but I was on the phone with our collection agent” or “my lawyer” or something to that affect and then I start discussing how I would never leave another small business owner hanging for his/her money. Don’t direct it towards them but discuss the problems that non payment causes and how much you despise a deadbeat.

Use a quality looking invoice system!

Third, you need a competent invoicing system. This includes quality invoicing software. Your invoices should be printed on quality letterhead and should always include a number 9 return envelope pre-addressed with your company name and logo on it. Your invoice package should scream out "I MEAN BUSINESS!" and not “Please pay if you get a chance someday!”

Be fast and consistent with your invoicing!

Fourth and very importantly you must send out your invoices immediately if not sooner. Send Statements every 15 days. When your customer’s invoice goes over

shouldn’t wait 30 days. Put “Payable Upon Receipt” on the invoice. Let your customers know right away that you will do everything in your power to collect the debt and that you intend on getting paid. It needs to be clearly spelled out on your job tickets, contracts and invoices. This should also be explained verbally. I always say something like “sorry I couldn’t take your call, but I was on the phone with our collection agent” or “my lawyer” or something to that affect and then I start discussing how I would never leave another small business owner hanging for his/her money. Don’t direct it towards them but discuss the problems that non payment causes and how much you despise a deadbeat.

Use a quality looking invoice system!

Third, you need a competent invoicing system. This includes quality invoicing software. Your invoices should be printed on quality letterhead and should always include a number 9 return envelope pre-addressed with your company name and logo on it. Your invoice package should scream out "I MEAN BUSINESS!" and not “Please pay if you get a chance someday!”

Be fast and consistent with your invoicing!

Fourth and very importantly you must send out your invoices immediately if not sooner. Send Statements every 15 days. When your customer’s invoice goes over

s and how much you despise a deadbeat.

Use a quality looking invoice system!

Third, you need a competent invoicing system. This includes quality invoicing software. Your invoices should be printed on quality letterhead and should always include a number 9 return envelope pre-addressed with your company name and logo on it. Your invoice package should scream out "I MEAN BUSINESS!" and not “Please pay if you get a chance someday!”

Be fast and consistent with your invoicing!

Fourth and very importantly you must send out your invoices immediately if not sooner. Send Statements every 15 days. When your customer’s invoice goes over 30 days, you must make a “courtesy call” and then you need to start sending an invoice every week. I always fax an invoice and then take it out of the fax and then mail it to them. This says “hey look, you owe me money and you are late!” Have some rubber stamps made up that tell your customers how you feel. Make them unique to your business! I have one that says “we were there for you, now please be there for us.”

It’s time to get your Collection Agent!

Sometimes no matter what you do seems to work so you have to seek professional help. Statistics show that if someone doesn't pay you within 60 days chances are great that they will not pay you within 90 days. You must assume that at the 60 day past due point that they are simply out to rob your company. You must come to the realization that they will never pay you and they must be dealt with in a more severe manner. Remember no one likes to lose a customer but a customer that doesn't pay is no better than a common shoplifter and should be dealt with accordingly. They are essentially thieves! Once their account has gone to collections you should never deal with that customer again unless they pay the collection fee of 33%.

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