I want to hear from you! Tell me your strategies and tactics for slow paying clients that have worked time and time again. Later, I'll post some of the most effective ideas from you - the SBOC community. We pride ourselves on a very low rate of write offs. Here's how we do it:
Be Specific: Spell out the terms (net 10, net 30, etc...) as well as the actual due date on the invoice
Make sure the Invoice date is the exact same date as the date submitted
Send the invoice in a USPS Priority mail package with delivery receipt (not "delivery confirmation")
Reminders: Exactly one day after the due date, call the client and politely ask for the "status" on the check. Ask if there's any more paperwork needed in order to cut a check
When they respond with an approximate date, say 10 days, be sure to call on the 11th day
Be Specific again: Politely get clarification on anticipated check "cut" date vs. mailing date vs. estimated time of arrival date
Inquire during these calls about what steps should be taken from your end to ensure prompt payment in the future - you want to make it easy for your client.
If the second due date comes and goes without a check, mail a 1lb. box of See's Candy with a note: "It would be really sweet if you could mail that check to me. Thanks for your continued business, Joe."
Send it 2 day priority mail with delivery receipt. You can go online to see who received the candy.
If the next round of invoicing is significant, send the invoice with another 1lb. box of See's Candy with a note: "It would be really sweet if you could turn this invoice around in 10 days."
Our experience has shown that constant positive reinforcement works better than nagging collection calls. Tell me what's worked for you - I'll post some of the responses in upcoming posts.