Saturday, February 4, 2012

What To Do About Customers Who Don't Pay

In the July 2011 issue of Crain’s New York Business, there’s an article entitled, “A Braintrust for Female Business Owners”. The story profiles an event hosted by a women’s group in NYC, where the invited guest was a customer relations expert. At the gathering, a business owner wanted to know how to handle a longstanding customer who had stopped paying her. The expert advised to continue doing business with the deadbeat; she suggested an arrangement with longstanding so that every time a new order was placed, they’d have to pay on an older order.  I don’t agree with this premise. The cost associated with carrying a debt for more than 90 days doesn’t reflect well from a cash flow perspective, nor does it bode well in the accounting of one’s books.  I think it’s just plain rude to ignore a debt.  Its one thing if longstanding was to provide an explanation for the problem and offer a solution.  It’s another thing when calls, notices, and request for payment are ignored.  What do you think? 

http://mycrains.crainsnewyork.com/blogs/executive-inbox/2011/07/a-brain-trust-for-female-business-owners/

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