You wouldn’t think that collecting money which you are owed
would be that difficult. As modern business owners know all too well, however,
getting what’s coming to you can feel like an insurmountable challenge.
The truth is, though, that usually, customers who don’t pay
will fall into a particular “category,” and if you can figure out which
category the delinquent customer is in, you can usually have a better chance of
collecting on his or her debt since you’ll know, after you read our article,
which strategies work best for which customers.
Difficult Customer #1: The Unorganized Customer
The unorganized customer is the one who isn’t purposefully
not paying his or her bills but is just having a hard time keeping all his or
her responsibilities and due dates straight. You can nip this bad habit of
non-payment or late payment in the bud by sending out reminder emails early
(before the bill comes due) and consistently, by applying harsh penalties for
past due invoices, and by keeping in very regular contact with the customer.
These customers are simply customers who need a lot of
reminding, and if you take care of the reminding part and punish the customer
when the reminders don’t work, they’ll start to prioritize and take care of
your payments, guaranteed.
Difficult Customer #2: The “Going Out of Business”
Customer
Depending on what sort of business you run, there’s a pretty
good chance that some of your customers will be not just people but fellow
business owners who are buying goods or services for their own businesses.
If that’s the case, you do run the risk of the business
going out of business for good, which might mean filing bankruptcy or just
plain not being able to pay bills.
If this happens to you, don’t panic. Utilize your usual
collection strategies, getting progressively and progressively more demanding.
If that doesn’t work or if the client truly can’t pay what’s owed, your best
bet is to offer a doable payment plan. That way, you might collect the money
slower, but at least you’ll still collect it! If none of that works, then your
only hope, unfortunately, is to take the customer to court or to forget the
debt.
Difficult Customer #3: The Angry Customer
Some people, instead of owning up to their inability to pay,
will turn their shame and anger onto you. These are the customers who lie to
you when you’re trying to collect on debts, who avoid you entirely, who say
they never got your invoice or bill, or who claim to be unsatisfied with your
products or services to try and get out of paying.
Do your best to handle these customers with care and
respect, even if it seems like they don’t deserve it. Also, try these helpful
strategies that often work with “difficults:”
l Mail
communications via certified mail, so you have proof they receive it
l Record
ALL phone conversations and other communication (you should be doing this
anyway!)
l Continue
your collection efforts no matter what, and let them know that you will do so
until a solution is reached
l Send
reminders of possible penalties for late payments or non-payment
l Turn
up the heat by including senior leadership in your correspondence
Unfortunately, even if you can figure out what type of
customer you’re dealing with and then act appropriately, sometimes your
collection strategies just plain won’t work. Some people don’t care about their
credit or about what might happen to them if they don’t pay. However, using
these strategies and “pinpointing” customers can help your personalized
collection efforts to be successful a lot more often.
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