Too Many Customers Pay Late. How Do I Speed Up Collection?
Jerry Dendy, vice-president of White Line Trucking, in Jacksonville, Fla., started subtly threatening to tattle on slow-paying customers when almost 20% of his customers had payments overdue. White Line, which projects 1996 sales of $4.2 million, began slapping a sticker on invoices that says the company reports to Dun & Bradstreet, the credit-rating service. Many customers quickly changed their tune. Dendy estimates that after the sticker was added, as many as one-fifth of the late payers started meeting White Line's 30-day terms.