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Unfortunately it’s part of being in Business. You’ll always get characters who refuse to pay or WORSE totally ignore your request for payment.

Bad Debtors are a PAIN but should be dealt with swiftly.

You can get ANGRY, upset and often extremely stressed when this occurs. It can put a strain on you and your cash flow. DON’T let it, remain focused and calm.

Here are a few tips for dealing with this INEVITABLE pest:

• Don’t take it PERSONALLY. Try and deal with the situation pragmatically and don’t let your emotions get in the way.
• Try and LISTEN to the reason behind the non payment. It may be a reflection on your product or service and use that information to improve.
• Have a clear and relatively short collection PROCESS and stick to it. For example;

1. 1. Day 1; Send a statement,
   2. Day 8; Send overdue notice,
   3. Day 15; Call the accounts payable person to discuss,
   4. Day 22; Having addressed any issues that may have arisen make contact again and request payment,
   5. Day 29; Send formal final request for payment,
   6. Day 43; Send to debt collectors and cease trading with that entity until resolved.

All that could occur within 45 days or less if you STICK to a process.

Special note: if the entity is not paying due to their own cash flow issues, then my approach is to NEGOTIATE a payment plan that can be met and keep in close contact to help them stick to their commitment. It’s up to you whether to continue to trade with them during that period or you may wish to halt until that payment plan is finalised or at least under control.

Remember not to let EMOTIONS or your frustration get in the way. Your objective it to get the payment, not to TARNISH your reputation.

Stay focused, Professional and always Polite.

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