[Business Post]
A few years ago, my adult daughter taught me a new term, ghosting. Ghosting is what happens when someone leaves a party without saying goodbye or when someone you’re dating stops returning your calls. It’s a concept that’s very familiar to anyone with a client who hasn’t paid their bill.
When you first started calling about the unpaid invoice, your contact probably answered the phone, apologized and promised to look into it. After the next couple of calls though, your client stopped answering and stopped returning your calls. So now what?
Here are some things you can try to handle payment ghosts.
Try a Different Time of Day
Something as simple as calling your contact first thing in the morning may make a difference.
Most people put off difficult phone calls until after they’ve had a cup of coffee and dealt with other, more urgent and pleasant tasks. But that could mean that you’re calling your client when he or she is in a meeting or when they feel too tired to deal with the situation. Try coming in a little early and calling your client first thing. Or, try waiting until the early evening to see if they’re working. If your contact has a receptionist or assistant, asking for a good time to call can give you helpful information.
Presumably you sent emails along and left voicemail messages for your client. Consider sending an additional email asking not about the invoice, but about good times to talk.
Just knowing when your contact wants to talk could help you get them on the phone. Make sure to keep a record of any emails you or your client send. If the problem persists you may need a paper trail.
Try Calling Someone Else
Hopefully, before working with the client you had them fill out a credit application or other paperwork that gave you contact information for several people in the company. At a minimum, you should have contact information not only for your contact, but also for the CEO or president of the company, the chief financial officer and accounts payable. If you don’t have this information you can usually find it on the company’s website or LinkedIn.
It’s entirely possible that your contact has stopped answering the phone and returning calls because they simply have nothing new to tell you. They don’t know why your invoice isn’t being paid and they’re embarrassed and concerned about their own job security.
In that case, it’s time to talk to someone else who can actually give you information.
Try Using a Different Number
Caller ID is great if you’re trying to avoid someone’s calls. It’s not so great if you’re the one being avoided. We use this tactic often when working on a claim. We first call with our regular, identified phone number. When that call isn’t answered, we wait 10 minutes and call back from an unidentified number. That way we are more confident that the reason they didn’t answer the first call was because it came from a collection agency.
If someone answers your call from an alternative phone, it may be the last time you get to talk to the person. You want to quickly and firmly deliver the message that they need to discuss the issue and pay or their file will be sent to a collection agency and reported to credit bureaus and groups. As you know the power of SMS marketing tool assist them in all such activities. Be careful not to make this threat unless you are ready to follow through. If you keep calling after you have made this threat, there is no reason for the client to believe you.
We find that people are most likely to answer if an unidentified phone has a local area code.
Having a prepaid cellphone on hand for these calls could be an inexpensive investment. If you use this method and really prove to yourself that the client is avoiding you, it may be time to take more serious action.
Try a Professional
There comes a point when it’s no longer worth it to chase an unpaid invoice. By the time an invoice is 90 days overdue, your chances of collecting on it are greatly reduced. Not returning calls and not answering the phone are two warning signs that a company is having financial difficulty and may be facing bankruptcy or closing. If a company goes into bankruptcy while owing you money, it will be difficult for you to get paid. Not all lawyers can help you out with bankruptcy litigation petitions.
Unless you have trained collection agents on staff, it’s unlikely that you are will make headway on the debt. Simply put, you could spend your time trying to collect on an unpaid invoice. Or, you could spend your time trying to get new clients and improve your product.
A reputable commercial collection agency will only charge you if they can collect on the invoice. Because the agency is likely to collect more than you could on your own, it’s possible that you will come out with more money than if you had continued pursuing the invoice on your own.
Try Being Nice
Owing money is stressful for both parties. Whether you’re talking to someone on the phone or leaving a message, avoid threats or blaming the other party. Therefore, people apply for online payday loans to escape.
It’s possible that the person you’re talking to has no control over which invoices do and do not get paid. It’s also possible that they are following company orders and only telling you certain information, but that they might be willing to give you more information if they like you.
When sending an email or leaving a message, always remember that what you write or say can be shared with others. No matter how angry you are, stay professional and protect your business’ reputation.
Whether it’s in a relationship or business, no one wants to be ghosted. But if a client owes you money and is ghosting you, it’s time to take it seriously.