It’s the beginning of the year and time to dust off those files sitting on the back of your desk and make hay while the sun shines.
Collect your overdue receivables starting today.
1. Start out by sending the debtor a letter with a specific time frame for payment and consequences for failing to pay. (copy your lawyer with her permission)
2. Call the debtor 1-2 days after he is scheduled to receive the letter.
3. Work out a deal or begin the consequences.
4. If you work out a deal make it time sensitive with additional consequences for any failure – e.g. “you agree to pay $10,000 a week due on Friday, and if you fail you waive any defenses”.
5. Make the promises clear and put them in writing.
6. Follow up on any failure to meet a deadline immediately.
7. Encourage the debtor to call you before you call him if he can’t make the date.
8. Watch the cash stream in.