How Can I Collect What I'm Owed?

I have a few past-due accounts, but too few to justify hiring a collection agency. What are some good strategies for collecting the money myself?

Sending bill after bill to collect on past-due accounts quickly becomes a waste of time and energy. Making direct contact with the person who pays the bills is the most effective way to collect on delinquent accounts. Pick up the phone and speak to the person in charge of accounts payable; in some cases that may mean speaking to the CFO, the controller or even the president of the company.

Speaking to the right person sounds simple, but getting that person on the phone may require several calls and plenty of perseverance. Keep in mind that your overdue account is probably not the only one, so you may be one of many vendors trying to collect.

The most effective way to collect on past-due accounts is to get the person to acknowledge the debt and agree to pay it. At the very least, you'll find out how serious they are about paying. If you get a commitment to pay the bill and they still don't send a check, sending out even one more billing statement is a total waste of time.

Doing further business with a non-paying or even a slow-paying client is out of the question.