How To Collect Your Unpaid Accounts

By Peter Courneya

Do you have trouble collecting your overdue accounts? Do you ignore the problem and hope it resolves itself by discovering a cheque in the next mail delivery?

These steps, suitable for all businesses, should be used to collect monies owing to you.

Day 1 Invoice your customer.
Day 30 If payment was not received, send a statement.
Day 45 A reminder notice is sent.
Day 55 Telephone your customer asking for payment.
Day 60 A final notice should be sent stating that if payment is not received within seven days, the account will be assigned to a collection agency.

If you’re still unsuccessful, it’s time to take further action – see a collection agency and ask about purchasing a booklet of Letter Notification Coupons. These inexpensive coupons are redeemed by the collection agency as required, saving you money in collection fees, but you must have the current address on file. The collection agency sends letters on day seventy, eighty, and ninety.

If these letters don’t produce results, it’s time to assign the account over to the collection agency and they’ll collect the account for you. The collection agency then keeps 33.3% of the money collected leaving you with two thirds of the total amount that you would not otherwise have received. And if the account goes uncollected, the agency will not charge you.

Don’t agonize over unpaid accounts. Take action and get the money where it belongs – into your bank account.

Peter Courneya Collection Services, 202-1674 Hyde Park Road, London, ON N6H 5L7. Phone: 519-641-3715 Fax: 641-3258

Published in Networking Today, March 1999.