How to collect outstanding debts

1. Quotable quote

Every business has its own techniques for collecting debts, starting with the humble account reminder and developing into more innovative techniques. It's very much like a sporting contest. Businesses must continually develop their own collecting strategies to match the increasingly sophisticated debtor strategies.

2. Smile & ponder

Maybe a letter is not always the best solution.

The letter from Dorset & Chalmers Pty Ltd to Angus McCrae, 34 Bolstock St, Bentley 9012, read as follows:

Dear Mr McCrae

Enclosed find our invoice for $106.95 for merchandise purchased in our Hepworth branch on 17 August 1999.

Payment at this time would be appreciated.

Yours
S. Simpson
Accounts

P.S. This invoice is now one year old!

The above letter was returned without a cheque - but under the postscript, in red, was scribbled:

Happy Birthday!!

3. Viewpoint

"Small businesses turn to professional debt collectors only as a last resort. Generally when an account is past due, it’s because the bill has been lost or a senior manager isn’t aware that the bill is unpaid.

The first and often most effective step for a small-business owner is simply to call the debtor company’s owner or senior manager and talk politely about the problem. …