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The bitch won’t pay, and then ran off. Help!

Dear Aunty B, I have a small client who won’t pay our bill. She owes us $35,000 from January this year and we agreed with her to accept $2,500 a month but she has just missed two months in a row and won’t answer our calls. Then, while I was on holiday in June, she […]
SmartCompany
SmartCompany

Dear Aunty B,

I have a small client who won’t pay our bill. She owes us $35,000 from January this year and we agreed with her to accept $2,500 a month but she has just missed two months in a row and won’t answer our calls.

Then, while I was on holiday in June, she ran up another $5,000! So she now owes us $29,000!

I saw her at a trade fair last week but she dashed out before the end of the seminar after she saw me and then she disappeared even though she was due at the next session because I saw her name tag.

It infuriates me that she is in business but avoiding me. I would like to see that b*%^* finished in business. What can I do?

HT,
South Yarra

Dear HT,

One of the reasons you are so cross is you have left it too long. The longer a bill is outstanding, the less likely it is to be paid. So while her behaviour is bad, you are also cross at yourself.

You must sit down with accounts and set up an automatic system. Any bill over say $100 is worth chasing. If the account was to be paid in 28 days, tell your accounts people to start chasing on day 29. Tell them never to do another deal with anyone who has an outstanding account. Put a debt collector with a good reputation onto the situation well before you get to the 120 day over due mark.

Keep the pressure on until the bill is paid. Your final step is a threat to wind up the company unless the bill is paid swiftly. This can often work with someone who is still trading but ignoring your calls. However, beware. This move can tip the late paying company over in which case you may receive only a small portion of your debt – if any – and it might take months to get even that!

So remove the emotion, replace it with process and focus on more fun things like signing deals!

Good luck,
Your Aunty B

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