Everyone who owns a small business or operates a home-based business knows that unpaid invoices can cripple your operation. Afterall, how can we continue operating when there’s no money coming in? And in utopia, all our customers would pay their bills in time. But since we have to deal with the real world, it’s important to approach non-paying customers and get that money flowing in. Here are some tips when it comes to getting invoices paid: Maintain paperwork. From the get-go, make sure that your business records are up to date and organized in a manageable fashion. You will need to have a paper trail for all customers in order to know, without a doubt, who has paid and who hasn’t. Build a billing process. You will need a specific billing process that not only works for you, but that stays consistent with each and every client. If this is not your area of strength, consider hiring someone to come in, establish you system, and teach you how to implement it. This will make it easier for you to keep track of who has paid, who has outstanding bills, and at what time of the month you should expect payment. Establish a late payment policy. As you implement your billing process, you will find that monthly statements will serve as an excellent reminder for late-paying customers. Often, clients truly have forgotten, and a reminder will be all it takes to get the check in the mail. For those who don’t get the hint, a handwritten follow-up or personal phone call might be the next step. Get a verbal commitment on the time-frame for the next payment, and follow-up. If you find that you just don’t have time for this action, then consider hiring a part-time assistant to specifically handle your invoices and billing. Be sure to document every phone call or other form of communication so you have an accurate record of all the steps you’ve taken. Consider payment plan policies: If you do have a customer that is genuinely in need of sympathy for an unpaid bill, then consider having a plan in place that addresses this issue. Small payments are better than no payments. If you establish policies for such occasions, define time constraints and expectations for both parties. Once your customer is back on track, you might find that they have developed even more loyalty to you for your understanding during hard times. Be prepared to take further action. If all else has failed, speak to your attorney about sending a demand letter, which will threaten legal action if a payment is not received. However, be aware that once you cross that line and bring lawyers into the mix, you will most surely lose the relationship of the customer, and you will need to weigh the pros and cons of this scenario. Seek the help of a collection agency. Once you have run out of resources, your last alternative is to seek the assistance of a collection agency. But before you do, make sure you are dealing with a reputable business. Ask other business owners about their experiences, and find personal references for an agency that not only is successful in retrieving outstanding payments, but also one that is ethical and legitimate. It may seem daunting to not only get a billing process in place, but to actually maintain it. Like anything else, once you get a system and adjust to it, it gets easier. The bottom line is that getting all those outstanding invoices taken care of will make your job, and your life, much more enjoyable. | 
