Executive Q&A: Scott Celley - Greater Phoenix Chamber of Commerce

How To:
Get Paid in a Down economy
By Lori K. Baker
John Principale (right) and Express
Digital CEO John Longobardo.
Lately, it seems many
entrepreneurs are
hearing more excuses
than second-grade
schoolteachers. “I
didn’t get a copy of
the invoice.” “I don’t
show that I received the
items.” “Who signed
for that? I don’t recall
getting that product
from you.”
The tough truth
is you might be last
on your customers’
payment priority list, due to job loss, housing loss
or the general tightening of the economy, even if
your company provides outstanding service. But
there’s an easier way to tackle the job so many
entrepreneurs hate: collecting receivables, says
John Principale, chief technology officer of Express
Digital Solutions, a Scottsdale-based document
management company. He offers these tips:
n Don’t wait. Principale suggests reviewing your
company’s accounts receivables weekly; his
company handles it every Monday morning.
n Create a schedule for following up. “If an invoice
is due in 30 days, on the 31st day call and ask
where your money is,” he says.
n Be armed with the facts. “Have all the data
immediately available when you call to collect -
copies of invoices, proof of delivery and
contracts,” Principale says. “Here’s where a
paperless system comes in handy. Lost and
misplaced documents are the biggest problem.
If a paper if misfiled it will never be found. A
paperless system eliminates all that.”
n Be flexible, but firm. It’s OK to accept partial
payments or offer extended terms, but be firm
in holding your customer to the agreement,
Principale advises. “The most common way to be
firm is to cut off credit. Stop supplying products
and services until you get paid.”
n Know when to give up. There are going to be
some overdue accounts that will never pay up,
regardless of the steps taken. Be on the lookout for
red flags, such as customers who don’t return your
calls or have stopped buying from you, Principale
says. And don’t wait longer than six months before
you make the decision to turn an overdue account
over to a collection agency, he adds.
Get connected
Express Digital Solutions
www.partwithpaper.com
20 IMPACT | SePTeMber 2010
Ribbon Cuttings
Contact us if you are celebrating a grand opening,
anniversary or relocation at 602.495.2194.
Nancy Sanders and Kristin
Garrison Slice (center) set tails
a-wagging with the celebration
of the opening of THREE DoG
MARKETING in Phoenix.
+ www.threedogmarketing.com
Play time! City of Phoenix
officials were on hand for the
grand opening of the new
Play Center at GoMPERS
HABILITATIoN cENTER at 6601
N. 27th Avenue.
+ www.gomperscenter.org
Everybody felt good at the ribbon
cutting for LAVEEN PRIMARY
cARE, which provides quality
healthcare for the Laveen and
South Mountain area at 7620 W.
Lower Buckeye Road, Suites 102-
103 in Phoenix.
+ www.laveenprimarycare.com
New bank President Steve
Johnson (red tie) was on hand
for the ribbon cutting of the
new M&I BANK branch at 2355
Anthem Way in Anthem.
+ www.mibank.com
The ribbon cutting for the new
NESTLE WATERS MERcADo
DEL AGUA at 5419 South
Central Avenue in Phoenix was
quite refreshing.
+ www.nestle-watersna.com
Everybody said ‘Cheese!’ to
mark the ribbon cutting at RITZ
cAMERA & IMAGE at 7131 W.
Ray Road, Suite 42 in Chandler.
+ www.ritzpix.com
www.phoenixchamber.com