How to Collect from Anyone (Even Enron)

14. Call before the due date.
Remember when fax machines were first used and it was common to call just to confirm whether someone had received your fax? When it comes to invoices, no matter how they were sent, the same protocol still applies. It's best to make the call before the invoice's due date -- not only to confirm its receipt but also to ensure that the customer's accounts-payable department has all the supporting documentation it needs to cut the check.

15. Get a commitment.
When you've got someone on the phone, always try to get a specific date by which you'll get paid. That is a good rule to follow, both during an initial call for a missed payment and in response to a previously broken customer commitment. Answers like "soon" or "next week" aren't acceptable. If the customer is dodgy about dates, calmly mention what you plan to do if you don't get paid on time. What should you say? You can refer to "the authorities." You can mention the idea of halting work on a project. And you can use statements like "You expect us to ship on time, so we expect you to pay on time," says the Brenner Group's Kadet. "Use that statement often," he adds. However, when you say things like that, be sure to maintain an even tone. And remember, your customer signed a contract. Don't be afraid to refer to it. Constantly. "You must create an expectation within their A/P department that you will call and insist on payment within the contract terms," says Kadet.

16. Keep a journal.
Take detailed notes of every collection conversation you have. Record the date of the conversation; whom you spoke to; the specific commitment the person made to you; and finally, what you ever-so-calmly threatened to do if the commitment was not met. Then, after the actual phone discussion, E-mail your notes of the conversation to your customer contact. That will (a) serve as yet another reminder that you are determined to get paid and (b) create an additional record of the conversation in your (and your customer's) E-mail accounts.

17. Follow up wisely.
If a customer reneges on a commitment to pay, you'll need to consider whether you should follow up on your threat. Keep in mind that your goal is to get paid as soon as possible. Sometimes giving a customer a second chance is the most effective thing to do. Before you follow up on your threat, ask if the customer is in any way dissatisfied with the services you've rendered. "I bring that up, especially when I know they're thrilled," says Tracy Wald. If your customer claims to be happy with your services, then you'll have another reason to act surprised when you ask -- for the second time -- why you haven't yet been paid. Perhaps the administrator that you're dealing with is new to the job; perhaps your contact person just came back from vacation. Regardless, you'll have to make one of two choices: get a second commitment from your customer, or take the action you initially threatened to take.

18. Let the punishment fit the crime.
If you decide to follow up on your threat, remember to be as professional as possible with your contact. Don't act as though you're out for retribution. Instead, remind your contact of the commitment he or she made and subsequently didn't keep. Explain that you're not trying to get anyone in trouble -- you're simply trying to get paid. One "punishment" many of our veteran collectors suggested was to E-mail your contact and "cc" his or her superior. The message would only restate the nature of the broken commitment. Here is another instance where it helps to have phone documentation. The E-mail message should also say something about what you will do if the bill remains unpaid. Allude to work stoppages and -- if you're working your way up the company hierarchy -- to other employees at the company whom you might need to "cc" on future E-mail messages.

19. Use guilt, not anger.
To achieve your aim -- getting paid -- it's important to get the name of all the people you've talked to, especially if they've made a commitment. "Once you get that commitment, whoever you talk to will feel guilty when you call back," says Wald. "They've made you a promise, and I've found that they'll do what they can because they don't want to be thought of as someone with no integrity. It could be the owner, a clerk, anyone." What's the proper way to react if your contact lies to you? With disappointment rather than anger. "It's just a sigh, mostly," says Wald. "Then I say, 'I told my boss you guys were going to pay, and now I'm going to look like an idiot.' And after saying something like that, rather than being pissed off at them, I ask for their help."

20. Avoid the owner.
One of Wald's axioms about collections is: "I normally choose not to collect from people who are spending their own money." He's found that entrepreneurs are less likely to pay up promptly because it's their own dough they're parting with. Rather, he prefers to have collection discussions with someone other than the business owner.

21. Never give up.
If you have no choice but to deal with the owner, then you have to make like a salesperson. Do everything in your power to get past the receptionist just to get the boss's ear. First, make sure that you talk to an actual person, as opposed to leaving messages. "I will talk to anyone," says Wald. "I start to really talk at length and explain my problem to the clerk or receptionist. Then, when I've finished the explanation, I just ask them (after learning their name) if, when they see a certain person, they could simply explain how important it is to me that they call me back." Of course, business owners receive calls all the time and expect to be screened from anything that's not at the top of their agenda. In some cases, you may have no choice but to wait on hold. Wald says he once waited on hold for four hours just to reach someone. "I had the phone on hands-free so I could still type and go about my business," he says.

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