Are you in business, especially a small business? Then this post is for you.
In business, we can sometimes have difficulty getting paid. I know I do, not often mind, though it does happen and debt recovery for a small business can be a costly and painful process.
Given enough time, clients or enough transactions, you will experience this in your business (if you haven’t already).
People who haven’t been in a business of their own sometimes don’t appreciate how dangerous these small losses can be for any organisation.
Between the actual loss and the break in cash-flow, these factors can haemorrhage the lifeblood out of your business that can literally shut you down.
Often these debts are for small amounts that are not worth pursuing in any “official way” (legally).
Not to mention the time spent chasing the money that is often an overlooked but expensive part of the equation.
And who needs all that drama and cost anyway? Not me.
There has to be……
A Better Way to Recover Debts.
And there is.
That’s why, when I am faced with a slow payer, I use what I (unimaginatively) call my “Bag Of Tricks”.
My “Bag of Tricks” is a simple series of communications, email normally, that I use in situations like this.
All the messages are extremely courteous, respectful reminders, with a dash of humour in them. After all, I am not in the business of making enemies. I just need to be paid for goods or services I have provided in good faith.
A Softly, Softly Approach
I use a very softly, softly approach. One that wouldn’t offend anyone. For the most part, this method works great (a 95+% success rate over the years).
The messages I send are called the “string emails”. I would love to take the credit for these but I first got the idea from a marketer by the name of “Joe Polish” (like furniture polish) based in Arizona. A very clever man, thanks Joe.
On the rare occasions when this gentle but effective method doesn’t work, I have one other trick left in the bag.
I call this method the “Shame File” and I only use this tool when all else fails.
And only after I have tried numerous times to reach someone about an overdue account. And even then, only if my calls and messages are met with silence, do I “pull the trigger” on the “Shame File”.
The Shame File, as you may have guessed is a page on my website where I disclose the details of the person and or company that has not honoured their pledge to pay for what they have purchased.
The Court of Last Resort
I don’t like using this tool but sometimes we are driven to extreme measures to protect our businesses, our livelihoods and our families.
When all other avenues of getting paid have failed, this is my court of last resort.
I have helped a few of my marketing clients with this solution and set up “Shame File” pages for them.
With the kind permission of Steve Scott from B2bJv.com I have a live example here for you to look at.
[thrive_accordion_group title=”The Shame File”][thrive_accordion title=”Open to View The Shame File” no=”1/1″ default=”no”] 
[/thrive_accordion][/thrive_accordion_group]I have found this method to be the single most effective way to bring a slow payer back to the table to settle an outstanding debt.
That said the less you use this method, the better. You will not win any friends with this but you will get long overdue payments being settled.
And in these days of social media mania, no one wants to be outed as a “Bad Risk”, a “Slow Payer” (or worse), especially in business.
That’s it.
I hope this helps you with your cash flow and keeps that “Bad Debts” entry in your accounts to an absolute minimum.
If you would like a copy of the “string emails” for your business (my preferred method), leave a request in the comments section below. I will be happy to send you a copy for you to use in your business or organisation.
Have a great day
Jamie
