The power of the "no threat" threat

the power of the 'no bluff' bluffThe "threat of the non-specific" is often more powerful than a firm, "heavy" email or letter. Works on the same principle that works on children .... "Wait til your father gets home". Not knowing what's going to happen is often more concerning than knowing. This wording is normally VERY effective in generating a reply from debtors who have ignored all of your previous "reminder" attempts. Try it. Just once.

Dear Mr Jones, Please advise when you will be settling this account. We are not aware of any queries and are now at the point of having to consider what alternatives are available to us to recover payment. Please reply to this email by 2.00pm next Thursday (31 July) to prevent this.

you don't even NEED a policy to send this ...

what will they do next?This wording almost ALWAYS gets a reply AS LONG AS there have been systematic reminders sent beforehand.

As always, start early.
Dear Mr Bloggs,
Please advise if payment for the January invoice 123456 ($6,123.00) and the April invoice 131234 ($3,231.00) 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. Regards,


Why does it work?
Because they probably don't know what your policy is and what you MIGHT do next. You probably haven't got a policy anyway!! (Fear of the Unknown strikes again!)

Using time off to collect overdue accounts

Using time off to collect overdue accountsI wrote this post on Wednesday, 16th April. Easter Holidays were due to start the next day. Businesses would then be closed until Tuesday of the next week. So, we used Time combined with Fear Of The Unknown to get one of our clients overdue accounts paid. (The debt was $6,000 at the time and went back to October - last year. It was almost 6 months overdue at the time.)
A text message was scheduled (we use SMS Global) to be sent to the Debtors mobile at 6.20pm on Thursday night, 17th April. It had my name in the message. The Debtor did not know me.
This is all that it said ....
Hi Jon. I've been asked to contact you regarding ABC Pty Ltd.  I will do so on Wednesday next week, at 10.02am. Regards, Michael Todd.

When he read the email, he could have done nothing about it. After all, it was Easter.
I didn't KNOW what'd happen but this was my forecast (an excerpt from my email to the creditor). 

(In a future post, I'll let you know what DID happen.)
* He probably won't be at work when he gets the message.
* You certainly won't be! :)
* So, he'll worry about it all weekend being able to do nothing about it to 'sort it out' quickly.
--- Who is this guy?
--- Why didn't he call?
--- Why such an unusual time?
--- Are they going to sue me?
* I expect him to contact you on Tuesday. (He knows you and feels he can "get around you" and stall paying. IE: He's comfortable dealing with you.)
* He'll make a promise to pay (if he doesn't pay straight away).
If he doesn't contact you, then he's either
1  ignoring the account - again, or
2  didn't get the message (The SMS website will confirm whether it's been opened or not.)
then, we will take the next appropriate action.

I will tell you what happened in a future post if we needed to do anything. AND, it would NOT be to phone the Debtor at 10.02am on the Wednesday of the following week!