Delinquent Customers: What Makes Them Pay?

Posted by Marilyn Miller on June 06, 2017  /   Posted in Uncategorized

bad_debt_recoveryDelinquent customers can drain time and energy from your business if you spend time chasing them for payment. They take time that should be spent to managing and growing your business. The process of recovering money owed to you can be demoralizing and frustrating, but it must be done.    So how can you get the best results in the most efficient way? Which tricks and tools are going to make delinquent customers finally pay you?

Communication – You should never stop communicating with delinquent customers. Your contract and bills are the first ways you communicate with customers. With delinquent customers, the squeaky wheel will get the grease. Your first step is to get on the phone and see what is happening. You would be surprised how one phone call will get results with some customers. Use the phone call as a sort of customer satisfaction survey as well as a request for payment.

A collection letter should be sent to any customer delinquent more than thirty days. If you draft a powerful letter you will use it again and again. You do not need to be threatening, simply state your demand for payment.

If someone in your company has a relationship with the delinquent customer, make sure to involve them in the process, perhaps to make a second follow-up call and create a sense of escalating urgency.

Leverage: Do you have a product of service that the delinquent customer wants again? If you have leverage, use it. Sometimes your leverage is seasonal: fuel oil dealers get paid as soon as it gets cold. Pediatricians get paid when parents need their camp or school physicals. Trade contractors can use mechanic liens to secure payment, if they do so in accordance with state laws.

A perfect example of using leverage to get paid is in the first Ghostbusters movie. A hotel is overrun by ghosts and customers are scared. It is bad for business. The Ghostbusters are called and capture the ghost. They present a very large bill to the customer, a very haughty gentleman who tells them their bill is exorbitant, and refuses to pay. Without skipping a beat, the Ghostbusters start to release the ghost back into the hotel ballroom. Not surprisingly, the snooty hotel manager agrees to pay.

GBWhile you may not want to be as aggressive as the Ghostbusters, find a way, if you can to use leverage to get paid. Stop providing the product or service, if you can – that is leverage. Hopefully, your customer contract allows you to accrue interest. Finance charges and late fees are a great leverage, and can also be used as a negotiating tool. Offer to waive interest charges if the balance is paid in full. If your customer cannot pay the entire bill, set up a payment plan that includes waiving of interest at the end of the plan if payments are made on time.

Flexibility – In addition to waiving of finance charges and fees, be flexible with your delinquent customers. Offer payment terms and provide multiple ways for customers to pay you. Be creative. Offer a small discount as a last-ditch effort. A small discount will be less than you pay an attorney or collection agency if you outsource the debt collection.

So keep talking, keep thinking and keep improvising – and you will find many more delinquent customers will come around.


  1. seo services chandigarh September 27, 2017 8:44 am Reply

    808395 875916I enjoy the helpful data you give inside your articles. 11417

  2. viral soccer game September 28, 2017 4:54 pm Reply

    70794 819977I appreciate you taking the time to create this post. It has been really valuable to me surely. Value it. 632767

  3. pezevenk October 1, 2017 7:06 pm Reply

    973198 4714Sweet internet site , super layout, actually clean and utilize genial . 34201

  4. DMPK Services October 1, 2017 8:33 pm Reply

    950776 738947This sort of in search of get the enhancements created on this unique lifestyle and diet, begin your L . a . Shifting the pounds diet remedy is actually a huge procedure into accesing which generally hope. weight loss 526356

  5. stp October 3, 2017 1:07 am Reply

    I’m commenting to make you know what a fantastic encounter my friend’s girl enjoyed going through the blog. She learned so many things, which include what it’s like to have a very effective giving nature to have men and women quite simply completely grasp several grueling matters. You actually exceeded visitors’ desires. Thank you for presenting such necessary, dependable, revealing not to mention cool tips about this topic to Gloria.

  6. October 3, 2017 2:46 pm Reply

    534548 25739Hmm is anyone else having problems with the images on this blog loading? Im trying to figure out if its a difficulty on my end or if it is the blog. Any responses would be greatly appreciated. 710404

  7. Judi Bola Bonus Deposit October 3, 2017 4:27 pm Reply

    402924 869137Outstanding post, I think people should learn a good deal from this web web site its rattling user genial . 52562

  8. adme services October 6, 2017 3:16 pm Reply

    378987 582043I genuinely enjoy searching at on this site , it has fantastic content material . 385715

  9. pornhub October 9, 2017 2:06 pm Reply

    237254 438899Woh I like your content material , saved to bookmarks ! . 176279

  10. hash thuisbezorgd October 11, 2017 6:10 pm Reply

    506468 325572Thanks for some other great post. Where else could just anyone get that type of information in such an ideal indicates of writing? Ive a presentation next week, and Im at the search for such information. 892569

  11. friv October 13, 2017 7:38 pm Reply

    257589 288804woah i like yur web site. It truly helped me with the info i wus seeking for. Appcriciate it, will bookmark. 279203

  12. roof repair November 1, 2017 8:35 pm Reply

    220603 688883Top rated lad speeches and toasts, as effectively toasts. might extremely effectively be supplied taken into consideration creating at the party consequently required to be a bit more cheeky, humorous with instructive on top of this. finest man speeches funny 631080

  13. Diyala Engineering November 2, 2017 5:37 pm Reply

    240048 814603I always was concerned in this subject and stock nonetheless am, regards for posting . 373215

  14. SCR888 Casino November 7, 2017 2:58 pm Reply

    433085 264806Wonderful post will be posting this on my blog today keep up the great work. 99668

Post a Comment

Your email address will not be published. Required fields are marked *


  © COPYRIGHT 2017 United Obligations
^ Back to Top