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DEALING WITH BAD DEBT COLLECTION EXCUSES MADE EASY
Does it sometimes feel like you have to earn your money twice, once when you do the work and then again to actually collect the money? Getting paid can be hard work with some customers or clients.
The best thing to do is establish a debt collection system, and one part of any effective debt collection system is to chase your debts by telephone, with either a diary at hand or using the notes section on your accounting software so you record exactly who said what and when. Here are some common excuses and what to say in response:
| Excuse | Response |
|---|---|
| We haven't received your invoice/we've lost your invoice/the dog ate your invoice | I'll e-mail/post/deliver the invoice today and call you tomorrow to make sure you received it and check when you're going to pay |
| We've paid your invoice already | Oh when was that? How did you pay? |
| The cheque is in the mail | When was it posted? What was the cheque number? |
| I'll post it tonight | Can you pay us via electronic banking? If not, I'll collect it this afternoon |
| The accountant has the cheque book | Who is your accountant? Can I meet you there tomorrow? |
| Oh yes, I'll get Marion to pay it tonight via electronic banking | How much can you afford to pay? I'll call by tomorrow to collect a down payment and bring you an AP form so you can pay by instalments |
| We're waiting to get paid ourselves by a big customer so we can pay you | When do you think that will happen? I'll call in and get a post-dated cheque |
Just remember this. If you don't chase and hassle your debtors someone who does chase up their debtors regularly and systematically will get paid before you. Can you afford to let that happen?
If you have any tax or business queries of any kind telephone 0800 ASK NICK, e-mail nick@abac.co.nz or use our form. The information in this article is of a general nature and should not be relied upon as a substitute for specific advice.
Disclaimer
Important: This is not advice. Readers should not act solely on the basis of the material contained in this fact sheet which consists of general comments only and do not constitute or convey advice per se. Changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. We believe the contents to be true and accurate as at the date of writing but can give no assurances or warranty regarding the accuracy, currency or applicability of any of the contents.