Len Sklar has been a guest speaker twice this year, in March and August. He is the author of “The Check is Not in the Mail” and an expert in managing collections and accounts receivable. He was kind enough to share an article on “Collections Made Easier” he recently completed. Here are a couple of tips that any bootstrapper with a slow paying or delinquent customer will find useful.

  • A collection phone call is 10 times more productive than another billing statement.
  • Call frequently. Calling once or twice a week is not harassment and is far more effective than monthly calls or invoices.
  • When you call, always ask for payment in full, sent today.  If you have to negotiate, it’s best to start from the strongest position.
  • Offer a discount for PIF – Payment in Full, today.
  • If you have to retain a third party to get your money, you have several choices.  A collection letter service, such as Transworld Systems is inexpensive and highly effective if used early in the billing cycle (at 60 to 90 days).  A letter from an attorney or the use of Small Claims Court can also get swift results.