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The company adheres to a friendly but firm approach to our collections. During early stage collection process we operate on the basis that the non-payment issue is something we have not done correctly. For example, they did not receive the invoice, it went to the wrong person, they misplaced it, it had incorrect information, ect. Our job is to help them get the invoice processed for payment. Under no circumstance should a client be made to feel that they are somehow irresponsible, deadbeat or bad.
It is critical that the communication be consistent, timely and documented. The following procedure applies to all clients except those noted as MBO (managed by owner).
Clients are setup with payment terms based on factors such as the size, type and stability of the organization, our relationship and their payment history. Based on the payment terms the following schedule of follow-up calls are made.
10 days past due
Create a copy of the file, highlight the invoice date, terms and stamp with “copy” and send via email. Use the collection template 1. Follow-up with a phone call to be sure they received the email and ask if they have any questions. If they have none ask when they think payment might be made. Note when they expect to send payment. If they expect it to take more than 10 days, ask if it is ok if you follow-up. The email and the phone call must be documented in the collections center, including commitments by the client. Send an email confirming the payment commitment (template 2).
20 days past due
Review the previous collection notes, if payment was expected call the client and ask for an update. Note the new update and send confirming email (template 2). The tone should continue to be helpful, understanding and accommodating.
25 days past due
Review the previous collection notes, if payment was expected call the client and ask for an update. Ask if there are any issues or questions with the invoice(s). Politely let them know they can pay by credit card or if they need payment terms you can arrange a payment plan. Note the new update and send confirming email (template 3). The tone should continue to be helpful but carry a small amount of frustration that they are not doing what they promised.
30 days past due
Review the previous collection notes. If payment was expected call the client and ask for an update. If they cannot assure payment within 5 days, politely let them know that you have tried to help them get their balance cleared up and ask if there is a reason that they have been unable to keep the previous commitments. Explain that this is out of your hands when the account is this far past due.
Send out the corresponding email and document in collections center.
If this is a hosting or support invoice, or we provide hosting their site will have a block placed on [date= 30 days from due date] and there will be a $25 reinstatement fee (template 4).
If not a site we host, then then the account will be turned over to our collections department (template 5).
45 days past due
Print a copy of the signed project agreement, a copy of the invoice(s), a statement including finance charges and complete collection letter 1 including the dates and payment commitments made during the previous 45 days and document in collections center
Send the letter via certified mail, return receipt request.
Template 1 for clients who we do not host
Template 2 for hosted clients
90 days past due
Complete a small claims court filing