by Hobo Matt
Busting The Biggest Debt Collection Myth
If you’re like most business owners the thought of recovering overdue accounts makes you cringe. And buying in to the myth that chasing overdue accounts chases away customers its extremely tempting to habitually put off recovery of your overdue accounts.
Yet if you’re brutally honest you’ll admit this fear of losing customers actually stems from a deeper desire to avoid the unpleasantness associated with hounding someone for money. And it’s only human nature to avoid the things we hate doing.
But in reality this reluctance to pursue overdue accounts is devastating and if you’re going to overcome this fear you need to accept a simple truth.
By definition, a customer pays you money in exchange for your goods or services.
Taking this further, a good customer will not only pay their bills on time they will also actively make you aware if they are experiencing problems paying their bills.
Lets face it, it’s no crime to find one’s self in a financial squeeze… especially in this day and age. However, a decent human being will take responsibility for their situation and as such will approach you openly and honestly with a view of reaching a mutually agreeable solution.
However, anyone who dodges your phone calls and letters; anyone who tells blatant lies to get you off their case; and anyone who makes up false disputes… they’re NOT is not a good customer!
So if we focus on the cold hard facts then anyone who takes your goods and services without paying for them is NOT a customer. Rather they’re a crook and as such need to be dealt with quickly and assertively. And because theyre a crook, every day that passes without you recovering your chances of ever seeing a cent of that money plummet exponentially.
Bottom Line: dealing with bad debtors firmly will not chase away good customers nor is it bad for business. In fact the opposite is true.