Reporter's Notebook

How to get paid

One of my part-time jobs in college was at a small, family-owned insurance company. At least twice a week I was tasked with calling customers to remind them that they owed us money. I often got no answer. But when I did, the conversations were more pleasant than you’d expect. And they almost always led to a payment.

It was a somewhat tedious task, and I was always a little afraid of catching a customer on a bad day. But as the economy gets slower and slower, I’m realizing just how important my phone calls were.

Business owners shouldn’t be afraid to call customers who are behind in payments, said Jan Stockton, a Vancouver-based certified public accountant.
“Hold them to (the payment),” she said. “It’s hard to do, but once you do it, it’s hard for the other person to say no.”

Along with those phone calls, clear policies on credit and collection help ensure payment, according to financial professionals at Frumenti, Lander and Wallace. Here are a few tips from the Vancouver-based firm:
• Define, maintain and communicate clear guidelines for credit and collections.
• The faster you send invoices, the faster you’ll get paid. Send invoices with product shipments if possible.
• When past-due customers agree to make payments, set specific dates and terms.
• Make clear the consequences of not paying, and follow through according to your policies.
• Make follow-up calls if no payment is received.

“My instinct is to make it my last resort to call them for payment, but I find if I do, it’s much better,” Stockton said. “They have a chance to tell you what’s going on and it allows them to understand they’re not the only one in this (economic) situation.”

--Charity Thompson can be reached at cthompson@vbjusa.com