Small business debt collection is both rewarding and frustrating. It is rewarding when your efforts to recover bad debt are succcessful. It is frustrating when it consumes too much of your time. It is also disheartening to small business owners when they do not get paid. In every case, small business debt collection can be more effective if you know the thins to do that will convince people to pay you.

Smart payment plans – Sometimes people to not pay because they simply do not have the money. Giving them the opportunity to pay you what they can afford each month. You must however, document the plan and get them to sign their agreement. If you can, get a deposit or downpayment, even a small one. Customers with “skin in the game” may be more likely to pay the balance owed.

Leverage – If you have a product or service that your customer wants, and if they owe you money, use that leverage to get the old balance paid. Be creative. Roll the old balance into a new one. If you can, stop providing new service or product until the balance is paid in full.

Communication – Your bills should detailed and easy to understand. When a customer defaults on payment, a collection letter should be sent to the patient that lets them know you are serious about getting paid. Get on the phone and speak with key customers in an attempt to work something out.

Easy of payment – Give customers a variety of ways to pay you. Know your customers and how they pay, and respond to their needs and preferences. If your customers want to mail you a check payment, provide an envelope with your bill. If your customers want to pay their bills online, give them the opportunity to do so.

Escalation – Some people are only going to pay you if you escalate the matter by sending it to your collection agency or filing a suit in Small Claims Suit.

Not every approach works for every customer. You will see fhat if you can figure what “turns” a file, then your small business debt collection efforts will be more successful and rewarding.