Home | Contact | Advertising
Small Business, Information, Resources, Articles - SmartBiz.com
Members Login:
Sign Up Forgot?
SALES & MARKETING
Marketing Online
Email Marketing
Search Marketing
Selling
PR
ONLINE BUSINESS
E-Commerce
Website Creation
Productivity
Accounting
CRM
Web-based Software/SaaS
BUSINESS STRATEGIES
Case Studies
Smart Answers
Videos
Podcasts
Smart Blog
Human Resources
Management
BITS & BYTES
PCs & Online Equipment
Mobile Computing
Security/Business Continuity
Telecom/Office Networks
Small Business Products
FORUMS & RESOURCES
Free White Papers
Tools and Calculators
SmartBiz Forum
Legal & Business Forms
News Feeds
Featured Webcasts & Videos
Franchise Offers


 
SMALL BUSINESS AND STARTUPS INTERNET TECHNOLOGY RESOURCES
Search SmartBiz:
Forms and
Downloads
Free
White Papers
Special
Offers
SmartBiz
Blog
Free Email
Newsletters
Finance
The Check's NOT In The Mail
Email ArticleEmail Article
Print ArticlePrint Article
Increase Text SizeIncrease Text Size
Decrease Text SizeDecrease Text Size
Del.icio.us
Digg This
Bookmark and Share

By Steve Veltkamp

Bad debts are a serious drain on a business, but one that it doesn't have to put up with. Here are some tips to help avoid the deadbeats, and get them to pay when you do run into them.

1) Establish a credit policy and stick to it. Make sure all your employees know what is acceptable and what is not. There should be somebody who can make a reasoned decision in special cases.

2) Check references on credit applications. Ask for references appropriate for your business. Call the references given, and understand that they are likely to be favorable (that's why your applicant listed them). Don't be satisfied with a mere satisfactory report. Ask specific questions, such as how often payments were late and by how much, what kind of excuses were given if late payment was made, the maximum that was owed and how much is owed now.

3) Bill promptly and clearly. The bill or invoice should go out the same day as the merchandise or service performance. Make sure the invoice clearly states when the bill is due, and what happens if it becomes delinquent.

4) If you are getting the run-around from a company, go to the officers of that company.

5) Follow up quickly. One tactic that worked for one company was to call overdue accounts every five days, first thing in the morning.

6) Have an escalating scale of contact methods and styles to use. The first reminder notices can be humorous, warm and friendly. As the debt becomes older, the niceties gradually get dropped. Do NOT ever threaten the customer, however, unless you are prepared to follow through with
threatened legal or collection action.

7) Be prepared to act quickly to recover unpaid bills - before a debtor closes shop or goes into bankruptcy. On the other hand, understand that many businesses are struggling along, and if you have confidence in them, most will sincerely try to pay you what is owed.


| 1 | 2 | Next page »
Add a Comment View Comments
Small Business Home

SmartBiz Shop
Promotional Items with Your logo
 
     
 
Smart Services
Spacer
Spacer
Spacer
Spacer
Add Your Logo Now
Spacer
Get Your Business Online
Build a Website Host Your Website Market Your Business Online
Business Form Downloads
Legal Forms Business Forms
Smart Forums
Recent Postings
Stimulus or "Pork"ulus?
Blog: How Do You Know What Insurance Is Right for Your Business?
If Layoffs Are Necessary, Protect Your Business
Blog - Do You Have Email and Internet Usage Policies in Place?
MORE
Home | Contact | Advertising
© 2016-2018 SmartBiz. All rights reserved. Privacy Statement and Terms of Service
Small Business Home | Business Tools | Online Business | Bits & Bytes | Sales & Marketing | Business Strategies | Forums & Resources
Email Marketing & HTML Email Driven By: Hosted By:   Design By:
Email Marketing
 
XML LogoRSS Logo
Receive our stories via SmartBiz XML/RSS feeds.
Include our stories on your website through SmartBiz javascript content feeds.