How to negotiate to collect past due accounts?

Question

As small distributor I have some clients with past due billing I like collect in appropriates way, so business relations are still in good manner.

Answer 1

Well, if you put them in collections, they will probably pay you but it will cost you money and they won't do business with you anymore.

I would first try discounting the debt a bit and sending them friendly reminders, even offering to help them find a solution because you value their business, if you can get them by phone.

If nothing works and they just don't care to pay you, then they are ripping you off and you will have to go through a collection agency. Most businesses will warn of this about a month in advance. This should help you minimize your cost and keep clients who are having a difficult time financially at this time... or forgot.

Answer 2

1-Send a copy of the invoice with a cute sticker (can be bought at any office supply store) that says "Just a Reminder; this invoice still has not been paid". 2-Send out a letter to all your customers saying that you are being forced to put a new policy in place due to a few slow payers -- that policy says that you cannot sell to anyone with an invoice open past 60 days. 3-Send out a letter to your slow paying customers saying that you would like to get a line of credit with your bank, but you cannot take in a Accounts Receivable Aging with invoices past 60 days on it, or they will turn you down.

Answer 3

I work in credit and collections for a medium size business ($150 million in annual sales).

I highly recommend using this website to help you in drafting collection letters that will collect the money and still keep your customers...

http://www.creditmanagementworld.com

Be sure to check-out their forms page...

http://www.creditmanagementworld.com/forms.html

Answer 4

You have to negotiate payments, if they can't pay it all at once work out a payment plan but do not extend any more credit to them. You may never get paid, it happens. Customers who do not pay are not customers you want or need. There are so many others who are better, don't waste your time.

Answer 5

frequently on a protracted overdue the provider sells the account to a 0.33 partry collector. your undertaking. pay it off pay with cox firsrt and would cancel matters witrh credit agenbcy not pay . credit company will disillusioned your man or woman comments. do it quickly to evade if no money negotiate they'll do this as welll

Answer 6

If they are not paying you need to stop distributing to them and send them to collections. Why worry about business relations if your not getting paid anyway.