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Successful Receivables Management Strategies
 Never
Say Die
When he's pursuing long-overdue receivables,
A.Emmet Stephenson Jr. doesn't believe he'll never get paid.
The chairman of StarPak, a $20-million software manufacturer
and support-services company in Greeley, Colo., swears by
the strategy of tracking unpaid bills 'for a very, very long
time.' 'We won't put executive effort into tiny bills, because
that isn't cost-effective. But with any overdue account over
$5,000, we're pretty relentless. We'll be their worst nightmare,'
says Stephenson.
Here's why he recommends the strategy:
It's unique. 'If you make your company stand out as the one
that won't go away, a lot of deadbeats will pay their bills
to get you off their backs.'
It's expensive. StarPack chases late payments by mail and
telephone weekly for the first year and monthly thereafter.
"For 29 cents a month, why not keep sending your bill?"
Stephenson ask. With one customer, StarPak did that for four
years, until the wrong executive got its bill and approved
payment.
| It
pays off. Popular wisdom notwithstanding, Stephenson has
been able to retrieve two and three year old receivables
collectively worth more than $100,000. "Sometimes
a company's management changes, and the new executives
decide to clear up their payables," he explains.
" Other times, companies genuinely want to pay, if
they can just get their own financial houses in order.
So we wait for them". |
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Author: Jill Andresky Fraser
Source: Inc. magazine
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