How to get paid invoices within 30 days and keep the customer? Do not let clients use you as their bank!

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How to get paid in 30 days
without using a baseball bat?
Cash Flow Management

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First control your emotions….
How do you feel when someone does not pay?
• Friendless
• Aggressive
• Indignant
• Crying
• Betrayed
• and

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You may feel frustrated

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Or Angry?

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Beliefs Values Attitudes!
You are making a Customer Service Call not a
Collection call!
Don’t get ANGRY! Get paid!

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Don’t ignore the issue by
Using the head in the sand approach

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Or focusing on work…

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Or by being too busy…

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In the past…
How we use to collect…

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Rough n ready…

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Pay up!

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And now? Definition of credit
Customer Service
Relationships
Empathy
Determination
Interpersonal skills
Trust

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Customer Service

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Relationships!
Initiating and Developing rapport

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Empathy

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Determination

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Interpersonal Skills
Its all about effective communication

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Trust
A Promise to pay!
98% of Customers want to meet
their commitments…
They just need your help!

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Late payers need a call!
Innocent until proven guilty
ET phoned home… he did not write letters!

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First Call Technique
The most effective of early-stage debt recovery tactics is
surprisingly simple - a customer service call made 7-10
days after the first invoice has been sent. Here’s how:
Focus on your customer. Are they completely satisfied with
the product or service you have provided?
If the answer is no. You now have the chance to resolve the
issue and secure your payment.
If the answer is yes. Now you can confirm they received
your invoice, and fax or email another copy if they didn’t
received the original.

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Make Effective Calls

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3 Essential Elements
1. When they will pay?
2. How they will pay?
3. What amount are they paying?
Apply these 3 elements and you are successfully
managing your cash flow and minimising
your risk!

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Make Effective Calls
• Establish and agree on the debt
• Obtain/agree payment commitment
Value - How - When
• Where necessary quote terms
• When the debt is in query establish exactly
what the query is
• If the customer is complaining, clarify who and
what the complaint is about. Forward on to the
right person and follow-up. Take ownership

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Reasons for Non Payment
Can’t - Cash Flow / No Money
Won’t - Payment Terms /
Relationship Issue
Shouldn’t - Legitimate query eg.
copy invoice.

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Can’t pay….

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Cashflow or no money
Establish whether the problem is Cash Flow or No
Money
Ask questions as to why they Can’t Pay
• Are they waiting on money?
• If so will it enable them to pay your debt in full ?
If the answer is -YES- the problem is Cash Flow
• Establish when their debt is to be paid.
• Arrange payment schedules.
If the answer is -NO- the problem is that they have No
Money.

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Won’t pay…

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Has the cash but won’t pay
• Establish the reasons for the relationship
issues
• If necessary arrange customer meeting
• Involve the necessary people e.g. Sales/Admin
• Check out any supporting evidence
• If customer issues valid - Escalate to have
resolved.

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Shouldn’t
• Establish exact detail of query
• Take complete ownership
• Establish what is needed to release payment
or resolve issue
• Clarify what you can do
• Commit when you will call them back
• Obtain support/escalation when necessary
• Document Details / Actions of query
• Agree timescales for resolution of query.
Keep going until it is fixed

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Do you have a credit policy?
a. Invoice on date candidate accepts
the role
b. Payment terms 14 days from date
of invoice
c. First customer service call - 7-10
days
d. Second phone call is at 16 days to
f/up and firm payment arrangement

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Credit policy cont…
e. Check payment was made when
agreed if not call again
f. At 45 days I send a letter of demand
and no further work will be done
g. After 55 days I send it off to a Debt
Collection Agency

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Other factors to consider….
• What are your payment terms?
• Is your Standard Terms and Conditions an agreement?
• When do you start your collection process?
• Are you helpless to collect off large customers?
• Are your invoices clear and concise?
• If you don’t get paid on time how do you feed yourself and your
family or pay your bills?

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Golden rules of effective collecting!
Make a call and get a valid arrangement the first time!
Treat the customer with respect, Always!
Believe in helping the customer!
If there is any issue speak to the decision maker!
Do not procrastinate!
Make your diary notes without exception!
Be persistent
Follow up, follow up follow up

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What is your biggest challenge?

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Thought for today…
If you think nobody cares if you are alive,
Try missing a couple of car payments!