0816_TOEFL-Test-and-Score-Manual-1997

Money Matters ● 73
GREAT
Collect the Money People Owe You
If you can’t find or afford a debt arbitrator, you’ll just
IDEA
have to do it yourself. When I ask the people at my
events if anyone owes them money, way too many hands go up. Unless you
are a bank, you should not be financing your customers.
The key to collecting money from customers is to handle it diplomatically
and not jeopardize a good business relationship. So, here are
some tips:
First, determine exactly how much each customer owes you by
reviewing every account. Next, contact the responsible person in writing—
not via e-mail. You need to determine whether the client or company has
temporarily fallen on hard times, or if they are in serious trouble and have
no ability to pay up.
If a good customer is experiencing a short-term cash-flow crunch, you
might want to be patient. But speak directly with the business owner and
tell him or her that while you are prepared to wait a few weeks longer for
payment, you expect to be paid in full. Ask for a partial payment as a sign
of good faith.
If you hear that a customer is struggling, move quickly to collect
something before all the assets vanish. Doing nothing is not an option.
If there is no immediate response to your demand for payment, look into
filing what is called a “writ of attachment” in court.
This step puts the matter before a judge, who can call a hearing to
determine whether there are any assets to attach. You may not end up being
paid in cash, but if the business is liquidated, you could end up with office
furniture, a truck, or some equipment.
A good collections letter:
• Clearly states how much is owed your company.
• Spells out exactly what action you want them to take.
• Outlines your course of action if they don’t pay right away.