Most businesses do it — they put off paying their vendors until they really, really have to pay them. Many put it off even later than that. It could be that they’re taking full advantage of their payment terms, have other payment priorities, or cash flow is just generally tight. Whatever the reason, the point is that if you do work with one of these businesses, then getting paid can be hard.
It’s not enough to only track who owes you money. In addition to tracking, you need to be the squeaky wheel. Don’t be shy about contacting them and letting them know what they owe and when you expect it. Many times, even this is not enough. Often, you need to also communicate what happens when the payment is late. Without communicating consequences of a late payment, your communications can be all but ignored.
With SimplifyThis.com, not only can you track who owes you money and who is late with payments, but you can also email reminder letter. The best part is that we’ve done the hard work and created the letter for you, so you don’t have to spend a bunch of time wondering if you are going to offend someone. It’s professional and to the point — all you need to do is send it.
If you get a response to your reminders, then great. If not, you may consider picking up the phone and trying to get a hold of them in person. For businesses that you have a regular relationship with, this approach can keep the relationship friendly, but still serve the purpose of nudging the payment along.
Beyond sending reminders and making phone calls, sometimes it’s necessary to up the stakes a bit for businesses that are basically stonewalling you. After two to three reminders, it’s not uncommon for some businesses to hand their unpaid accounts over to a collection agency. Even if you don’t intend to follow through with it, just mentioning a collection agency is sometimes all it takes.
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(Image courtesy of _gee_)