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It’s tough to stay in business if you don’t get paid or are paid late. Delayed payments are a killer to cash flow. It’s especially frustrating when you have to “chase money.” Thankfully, bad debts have never been a major problem at Blackman & Associates. However, on occasion, we too have to politely and persistently pursue dollars due. There’s no magic to getting money, but the following steps have proved successful for us:

1. If payment isn’t received within one week of the due date, a copy of the bill is faxed, e-mailed and/or mailed to the client.

2. If 10 days later, payment still hasn’t been received, another copy of the bill is faxed, e-mailed and/or mailed. Written on the invoice is, “This must have been accidentally overlooked. Thanks for taking care of it today.”

3. If 10 days later, payment still hasn’t been received, a friendly phone call is made to the “accidental debtor.” Our request goes something like this: “Hi! Just wanted to make sure you’re benefiting from the CD and DVD programs you ordered. You are, wonderful! We’re sure it was an oversight, but would you believe we haven’t received payment?! Could you please take care of it today? You will, great! Thanks for your help. Appreciate it!”

People are extremely apologetic and some say they’re even embarrassed. Payment is usually received immediately.

4. If 10 days later payment has still not been received, a letter like this one is faxed, e-mailed, and/or mailed: A “final appeal” for collection should be brief, friendly and successful. This letter is brief. It’s also friendly. We wish to keep your good will. Its success, is determined by your sense of fairness and immediate payment. Despite repeated requests, (by fax, mail, e-mail and phone), your payment has still not been received. (See attached invoice.) We want to protect your credit rating. Unless payment is received on or before (always give a specific date), you’ll require us to turn your account over for collection. Send your payment today! Thank you.

5. If payment has still not been received by the specified date, then the matter is turned over to my attorney for collection. This is a last resort, but an effective one. It’s amazing how a polite correspondence from “Legal Louie” quickly motivates action and payment.

What if payment still doesn’t arrive? Then, it’s decision time. You can sue. Or, turn it over to a collection agency. (These remedies will be influenced by the amount you’re owed, “hassle” factor and expense.)

You can forget about it. (This, too, will be influenced by the amount you’re owed, but it’s often the right decision to “move-on,” even though this is a frustrating decision.)

You can watch old gangster movies to get ideas on “persuasion.” (Often very entertaining, but not very realistic.)

You can call a debtor and offer at a future date to be the pallbearer at their funeral. After all, you’ve carried the individual for so long, now you can finally finish the job! (Just kidding about this strategy, but it sure is appealing!)

As a client of mine once said, “Until you get paid, your quality product or service is merely a gift!”

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Jeff Blackman is a speaker, author, success coach, broadcaster and lawyer who lives part-time on Marco Island. His clients call him a “business-growth specialist.” Send an e-mail to jeff@jeffblackman.com or go to www.jeffblackman.com to subscribe to his free e-letter.