When should I collect account payments?

chasing slow payers should start as soon as the payment becomes dueStart chasing slow payers and collect their account payments as soon as you can - while YOU are the still the Good Guy.  

This story explains why far better than I ever could ...
THE DAY THE COMPLAINT IS SERVED ON THE CLIENT "Boy. Am I in big trouble. I never should've sold those pulleys without checking." NEXT DAY "I forgot that I'd cancelled my products liability insurance." 2 DAYS LATER ON FIRST MEETING WITH LAWYER “If I lose this case - I'm bankrupt." AFTER 8 DAYS OF DEPOSITION OF ADVERSE PARTY "I don't know how you learned so much about pulleys and jet aeroplane hydraulic mechanisms. You really must've studied hard." AT TRIAL "Do you really think that you can keep the copy of the contract from being introduced by using the "Best Evidence Rule?" AFTER MOTION SUSTAINED AND MOTION FOR DIRECTED VERDICT TAKEN UNDER SUBMISSION "You've got them running scared. Try to settle." AFTER SETTLEMENT IN HALL "You did it. You did it. I can't believe you did it. I'm getting a Bank Cheque right now to pay the settlement before they change their mind." DAY OF SETTLEMENT "He's a fantastic lawyer. No other lawyer could've done what he did. I owe him my business - my career - my everything." 10 DAYS LATER "He's a great lawyer and did a great job, but the law and the facts were on my side." 3 WEEKS LATER "He's a pretty good lawyer but the judge and the jury were on my side." 4 WEEKS LATER He did his job but there's no way I could've lost." 6 WEEKS LATER "The case was cut and dried. I could've argued it without a lawyer and won easily." 8 WEEKS LATER "I never needed a lawyer to begin with. He made a big deal out of a simple matter just to build up his fee." 10 WEEKS LATER “He's crazy if he thinks I'm going to pay his bill." 12 WEEKS LATER "That shyster S.O.B. sued me for payment. I'm filing a complaint against him with the Bar Association and I'll cross-complain for malpractice."
So ... the answer to “When should I collect account payments?” is, quite simply,
as soon as payment falls due.

how to get invoices paid

How to get invoices paidSometimes, despite your best efforts when chasing slow payers, they simply don't pay. You've sent out your standard "reminders", left phone messages and maybe even sent text messages, but, no response.  What to do?  Easy, threaten the non-specific.
Just send a short email (on top of any earlier ones sent maybe) and say ...

Dear Mr Bloggs,
Please advise if payment for the October invoice 123456 ($3,456.00) has been organised. If a payment date has already been scheduled, thank you.  Please advise when it is to be made.
But, if not, please either settle the balance due or contact me as I have to submit a report to the Board about all overdue accounts this week and, in the absence of any response, they are likely to suggest that we revert to policy.
In advance, thank you.


You may not even have a "policy", but your debtor may not know that. You're simply applying the Fear of the Unknown again. Try it ... just once. :)

How to quickly collect a very old debt - in just one day.

How to collect a very old debt quicklyQ:  What can you do when customers are completely ignoring you?
A:  Take a gamble. Do something different. Throw "everything" at them in one hit. Be extremely firm.
The events
Wed, 22 Jan - A client emailed us. They had a debt owed to them. It was one YEAR old - $6,814.50. They'd tried "everything", they said.
Thu, 23 Jan - We sent them instructions.
Fri, 24 Jan - The debtor called the client the very next day and apologised - most embarrassed, didn't answer his phone because he didn't have the money but now was able to pay. (funny that!)
Tue, 28 Jan - Client confirmed that the full amount had been received.
This is what we did
We told our client to
1.     Cut and paste the wording below on to YOUR own letterhead and save it as a WORD file.
2.     Save it also as a pdf.
3.     Send it to the debtor - twice.
ONCE - as an email
* By emailing it to him (preferably from the secretary's email address, so that the business owner is left out of it)
* Using the subject line ... “2.00pm, Tuesday, 28 January”
* Putting ONLY this wording in the body of the email to say ... “The attached file is self-explanatory”.
TWICE - as a letter
* By posting the WORD copy to him.
  (If you can send it using Australia Post’s person-to-person service even better, but not essential.)
By doing it that way the debtor
1. will get “the message” twice in writing on two different days.
2. is more than likely to open the attachment in the email due to the odd subject line and wording in the body.

****************************************************************** This is what the email/letter said
Dear Mr Debtor,
My name is Michael Todd. I am a Financial Consultant. Records indicate that
There is a remaining balance of $6,814.50 outstanding (Invoice 1234, 21 Feb 2013).
At no time has that balance been queried.
You have not replied to recent emails sent, messages left or even to the final email sent to you by Fred Bloggs on 13 January.
Allow me to be extremely clear.
Fred Bloggs Pty Ltd are not prepared to "carry" this debt any longer.  Recovery of this debt has now become a matter of principle.  This final email is simply to let you know that
I have been instructed to commence litigation against you, if I deem necessary.
When judgement against you is obtained, not only will you incur additional legal costs (for your solicitors should you engage any), you’ll have a percentage of ours to pay too.
The courts also allow interest to be charged on top of the claimed debt.
Judgement against you will be recorded with Veda Advantage. (This affects your ability to obtain finance for a period of 5 years. Other coffee suppliers will also see this.)
In other words, should you decide not to respond to THIS email ...
The amount owing is likely to increase to at least $9,000,
Your credit file will have a default judgement noted on it, and,
Enforcement proceedings will be taken if you decide not to settle the judgement debt as well. This incurs even more costs and embarrassment when property to the value of the larger judgement debt is seized.
Bottom Line:
1 Settle this account in full, or
2 Contact me personally on 0412 345 678
by 2.00pm next Tuesday, 28 January.
I am not prepared waste time sending emails and leaving messages. The future course of this matter is now entirely in your hands.

****************************************************************** And the beautiful thing about this is that

You DON'T have to use a third party - do it yourself!  Make up a name.  The debtor won't know.  It's NOT illegal to do so. AND - you'll probably get paid.

Similar posts as well as the links in the body above
Mean it?  Then write it.
When you're simply being ignored
Sometimes you just HAVE to get tough