One of the most frustrating parts of running a business is credit collection. It can consume so much time and effort on the part of the business owner and his staff. Even following up on payments is dreaded by those involved.
Following up payment by phone where you call the debtor and ask him to pay a delinquent invoice is an unattractive prospect. But collection calls are important as unpaid account receivables can affect your company’s cash flow conditions. 
Small-business owners must follow certain rules when it comes to dealing with unpaid invoices. Experts can give you some tips on calling the debtor and making sure that the purpose hit the mark.
Don’t call in the wee hours of the morning and scream for the debtor to pay for his debt. That can get you into trouble and ruin any chance of collecting unpaid debts. Make sure that when you call, the conversation is civil and brief and direct-to-the point. You may have to engage your debtor in a brief, friendly, conversation but beware of the pitfalls of being too friendly and getting yourself too involved in his troubles that you forget the purpose of your call – that is, to collect his debts.
Be polite and accurate. Mention the details of the unpaid account and ask him when he can settle it. If you’re not happy with the answer, try to negotiate and get a more definite payment date. Once you’ve agreed on the payment date, tell the debtor all over again about your agreement and that you will call him again to remind him.
Be prepared to call several times if the debtor fails to do as he promised. The debtor may avoid you but be persistent. Remain firm and in control, and don’t raise your voice even if you’re already angry and frustrated with the customer. When several phone calls fail, let your customer be aware of the actions you’ll take if he fails to pay his debt. By being calm and straightforward, you send a message to your customer that you mean business and that you’ll not be fooled around for long. Proper negotiation techniques can go a long way in ensure that you get paid even if it would take so much effort from you.
