How To Get Your Invoices Paid
A recent Businessweek article, reports that business bankruptcies are near a 16-year high. Small businesses are having a hard time paying their bills, and an even tougher time trying to collect payments from their own customers. If you are having a difficult time collecting on delinquent accounts, try the following tactics to increase your odds of getting paid.
To Make Sure Your Customers Pay:
1. Call immediately after a missed payment. Don’t wait too long to follow up. And, don’t rely on demand letters. Call to find out why the customer is late and when a payment can be made.
2. Think about hiring a collections agency. These agencies specialize in getting people to pay their bills. They normally charge between 10 to 25 percent of the money they collect on your behalf. Hiring a third party agency can save you the time and frustration that comes with chasing down your money.
3. Explore your legal options. You can attempt to collect payment by taking the delinquent party to small claims court (if the invoice is under $5000). Larger claims have to go through civil court. Having your lawyer draft up a letter on your behalf may also help motivate your late paying customers to send payment.