Collecting Past Due Accounts - Getting Inside Help

by Jim Finucan

Published on this site: November 10th, 2005 - See more articles from this month

A frequent problem in commercial collections is the inability to reach the decision maker. The president or CEO of a company often insulates himself against such bothersome issues as unpaid invoices through a layer of VPs and department heads. Trying to fight your way through to the top guy in order to get your money can be the height of frustration.

Sometimes you just can't climb all the way to the top and you have to settle for dealing with a vice president or the accounts payable manager. The goal here is to find someone who will take your side. And, yes, it can be done. Work to build a relationship through your calls, a relationship based on truth and respect. Ask direct questions about how much authority this person has and use him or her to help get you as near to the top-level decision makers as you can. When you've made it as far up as you can go, pay attention to the challenges this person is dealing with and then suggest a solution that allows the two of you to work together to eliminate the need for further collection procedures.

Hold your inside contact accountable for their promises and earn their respect by being firm and professional, not personable and friendly. Don't be stalled or put off. Keep the conversation focused on the bill that's owed and how important it is for everyone involved that the bill be paid. Use words like integrity and honesty a lot. You want your contact to go into meetings with the higher ups seeking payment in full and ready and willing to report back to you on the outcome.

What you're looking for is a champion. You want someone with some backbone who can handle your direct questions – even stand up to you a bit. That will be the basis of your working relationship. The business world is really about relationships and if you can develop an ability to establish them you will surely prosper.

Jim Finucan is a professional collections manager whose specialized techniques can easily double the amount of past due bills your business brings in. His book – "Past Due – A Bill Collecting Manual" – is a "must have" for any business dealing with past due invoices. More info: http://www.tiare.com/pastdue.htm