Receiving Your Due
-- KNOW YOUR CUSTOMER: Investigate prospects' creditworthiness. Places such as Dun & Bradstreet (800 333-0505) or Experian (800 520-1221) sell company credit histories.
-- BE SMART ABOUT BILLING: Send invoices more than once a month, and add urgency by dating it with the next month.
-- CONSIDER IN-KIND PAYMENT: Accept free services, for instance, when a customer really can't come up with the cash.
-- WRITE FIRST, SUE LAST: Hire a lawyer to send a demand for payment on letterhead; it doesn't commit you to filing a costly lawsuit.
-- USE A COLLECTION AGENCY: Farming out bills can get results, but on average agencies take a 30% commission--and collect only 22 cents on the dollar.
Updated June 14, 1997 by bwwebmaster
Copyright 1996, Bloomberg L.P.