Commercial debt collection can be a real challenge.  The fact is, paying your invoices is NOT a priority to your customers. On average, 80% of your customers will pay on time, while 20% will not. Why is this so? The answer is quite simple: it’s not a priority. Paying YOUR invoice is not your customer’s top priority. In fact, many of your customers rely on this free-float to help finance their business. This strategy, known as Trade Creditor Financing, can hurt your bottom line if not controlled and managed. (more…)

When all other collection attempts fail, you have a choice: either let the matter (and your money) go, or take it to court. A written Final Demand Letter is recommended by most small claims courts and required by a few, to file suit. This is probably the most important among collection letters.

Keep in mind though that you don’t want to go to court, you want to collect the monies owed. The Final Demand Letter sells the need to pay while it fulfills legal requirements. A good letter results in payment in as many as one-third of all cases, probably because the written word is far more powerful than speech at this stage of the game. (more…)