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How to Collect Small Balances

I wrote an article last year about collecting small balances and in it I suggested that “putting a simple system in place for collecting your small balances will reap the rewards without draining you of time and energy” but I didn’t give you the system.  Don’t know what I was thinking.  So here it is, 4 simple steps to collect small balances;

  1. Schedule time to execute this process monthly, most common the 1st of the month, the end of the month, the 10th of the month or the 15th of the month.  It doesn’t matter when you do it but do it but be consistent.
  2. Send an emailed and automated friendly reminder to all of your customers that have a past due balance.  For best results attach a copy of the invoice.  Once you’ve got this set up it’s the cheapest and fastest way to get results.
  3. Wait 7 to 10 days, post all the payments you get so no one gets a notice who has already paid – send out a 2nd request email blast.
    1. Put 2nd request in the subject line of the email
  4. Wait 7 to 10 days and send a 3rd email and, if you still have a fax machine or you fax via email send a broadcast fax.  Not everybody has a fax machine anymore but this is still effective for those who do.

At this point somewhere near 1/2 of the original balances should be paid.  If not you might have a problem you’re unaware of and it’s probably time to get on the phone and start talking to some customers.

As always our “shameless pitch”  if this is work you don’t have time to do or don’t want to do, give us a call, we’re happy to do it for you.  Or you can forgo the entire thing and use our 3rd party “courtesy collection letter package”.

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