« Is it common to have problems collecting from customers? | Main | What legal issues should I be aware of when collecting money? »

May30
Is it worth it for me to chase customers for my money?

Some business owners think every penny is worth it, it is after all, the principal of the matter.  It also depends on you, your staff and your resources. Some other things to consider are the age of the past due amount, the amount that is owed and what information you have gathered on the customer before you made the sale.

Do you have contact information or a credit application that is filled out and signed? If you have the information you need readily available, chasing your money should not take to much effort on your part.

If you do your own collection work, or have a credit manager, you probably have a credit policy in place. You can make a couple of phone calls regarding the balance due and send a couple of letters.  Then depending on the balance that is due and how old it is, you might want to consider small claims court or a collection agency.

If you do not have a credit policy and did not get a credit application, don't be surprised if the mail is returned and the phone disconnected. If this is the case, it will take more hard work on your part to obtain contact information or have the account "skip traced" in order to have a good number and/or address so you can place them with an agency or take them to court.

Without good contact information you are limited. You can skip trace (or locate) accounts yourself, but you need to know where to go, what to pay and how to do it.

Most collection agencies will offer this service included in the fee they charge you to collect. But remember, if they have to locate your customer, that will take some time and then they have to contact them at the new address or phone and try to persuade them to pay.

If you have a signed, filled out credit application at the time of the sale, most of this can be avoided and your account can be collected much quicker and with less effort.

Image Ref: 04-27-10 - Letters

related entries


0 Comments/Trackbacks




submit a trackback

TrackBack URL for this entry:

post a comment

Name, Email Address, and URL are not required fields.





Comment Preview

« Is it common to have problems collecting from customers? | Main | What legal issues should I be aware of when collecting money? »

Advertise

sponsored ads



subscribe


Prefer Email?
Subscribe below-

Enter your Email:


Powered by FeedBlitz What's this?

Current News

Support This Blog

My site was nominated for Best Education Blog!

business social media

Use these fast growing business social media sites to promote your business, feature your products, spotlight your business leaders, create links, and drive traffic back to your company site, all for free!

BIZZlogos - Add your logo - free link to your site
BIZZphotos - Add photos of your products and people
BIZZprofiles - Submit your profile and build your online visibility
BIZZspotlight - Spotlight your business with free links
BIZZvideos - Videos about businesses, products and business people.
BIZZbites - "Digg" for Business - Submit your articles and posts

know more media network

View Network Map

Network Feed List (OPML)

Know More Media Network
Feed


we support unitus

PRWeb

Influencer



BizCreditPolicy is a member of the Know More Media network of business related blogs.

Here are some current headlines from some of our business publications:

ProductivityGoal

CallCenterScript

AdHurl

TheBizofKnowledge

LandingTheDeal

CustomersAreAlways

HealthCareVox

BrainBasedBusiness

TheInsurancePolicy

MarketingBlurb