Dear Ms. Marketing: With work slowing down, so have payments from my accounts.  Do you have some helpful tips on how to collect?

First of all, make sure you have some kind of payment policy in place. You may want to check with your attorney on wording in case you have to go to small claims court if you don’t get paid.

Require new accounts to complete a credit application and sign a copy of your terms and agreements. This is a good way to find out about your customer. If they fill out these forms then they are above board and you shouldn’t have a problem.  If they do not fill out the forms then you may have a problem. You may want to consider C.O.D. or credit card only terms for those accounts that are not willing to give you a completed credit application.

Credit cards can work for you. Some small businesses don’t like to offer credit cards because of the processing fees. One way to help with that is to take the processing fees into account when you set your pricing. You can work with your processing companies to get a lower price because they also want your business. When you offer credit cards you can solve payment problems some times by saying, “You know we take credit cards.” or “Can I put that on your credit card?” You can let the customer know that any account that goes past 60 days or more will be charged to their credit card.

Incentive programs are an option, but how well do they work?  You have to be careful about incentive programs that offer something for early payment. You don’t want to cut into your profit margin. Remember, it is real easy to give and hard to take away. I would try to let the good customers, who always pay on time, know that you appreciate how quickly they pay.  Make a phone call to their office every now and then when you are calling the ones who don’t pay. I am sure they will remember that call.

They don’t know what they don’t know. Keep on top of your accounts receivable.
Sometimes all it takes is a phone call. With summer coming up, office managers may be out which leaves bill paying to someone else who may not know your terms and agreements. A quick reminder e-mail can also get payment quicker. Make sure you keep good notes on any and all contacts to offices. Remember to record the date, time and person you talked to in each of the offices.

Last of all, in these times you may want to do some creative payment plans. Work with your customers that have been loyal to you. If you know that they are going through a tough time, make a plan together that will make both companies happy and you will have that account through thick and thin.

Remember that the most important things in your home or business are the people.

About the author:Lanier is president and owner of The Lab 2000, a dental laboratory serving a national market out of Columbus, Ga. She started her career in the dental field in 1980 with dentures and partials.  Since opening her laboratory is 1995, she has grown The Lab 2000 into one of the largest female-owned laboratories in the country. The Lab 2000 maintains it membership with the National Dental Laboratory Association, along with Georgia, Florida, Mississippi, Tennessee, Louisiana, North and South Carolina, Kentucky, Texas, Eastern Conference and the Southeastern Conference of Dental Laboratories. She is the 2009 president of the Georgia Dental Laboratory Association and serves as an NADL laboratory representative.