It is well known that many small businesses do not survive the first two years, and the inability to collect from non-paying clients is likely a large contributor to business failure.
The first realization a business must come to is, no matter how nice a client is or how much business they bring you, if they do not pay then they are not a good customer.
After all, it’s not about just making the sale; it’s about getting PAID after the sale.
THE SPECTRUM OF NON-PAYERS
One Broken Promise
Regular Contact with You
You Know They Are Doing the Best That They Can
Have Had a Good Track Record with You
They Are Willing To Send Post Dated Checks
Are Willing To Sign a Personal Guarantee
The Account Is Less Than 90 Days Old
Have Lived Up To Previous Negotiated Agreement
^ABOVE THE LINE – CONTINUE TO WORK ON IN-HOUSE
v BELOW THE LINE – WRITE OFF OR ASSIGN TO THIRD PARTY
Spent Insurance Money and Refuses to Pay
Slams Phone Down
Will Not Return Phone Calls
Accepts Numerous “Duns” And No Communication
Has Dispute That Is Invalid
Broken Two or More Promises
Unwilling To Sign a Personal Guarantee
Unwilling To Send Post Dated Checks or Pay Balances in Full
Denies They Are the Responsible Party
And Responsible Party Refuses To Make Contact With You.
Written Bad Checks and Has Not Made Good
Complete Skip, Disconnected Phone or Mail Return
It is vital to your cash flow to determine if your customer is “above the Line” or “below the line”. If they are above the line, continue to work on these accounts in-house. If they are below the line, write-off or assign them to third party.
Please visit Dynamic Legal Recovery’s website or call us at 877-777-7564 for your complimentary evaluation.