The Check's in the Mail

All business owners know that the longer one holds on to the money, the better.  Most owners are not unscrupulous and it’s the rare occasion when I’ve encountered one who truly cheats me out of my money.  What’s common, however is the resourceful business owner who wants to hold on to my money for as long as possible. Here are some common delaying tactics – and some ideas on how you can fight back.

Tactic 1:  The Wake-up Call 

“Why, yes, I’ve got your invoice right here.  Things have just been so crazy around here recently I plumb forgot.  I’ll make sure to get something out to you shortly.”

This tactic is used when a business lacks certain accounting controls. The customer requires a ‘wake-up’ call before anything else is done.  Sometimes I wonder whether a few of my own clients would ever pay my open invoices without a “wake-up call.”

COUNTER-STRATEGY: Call the more sneaky ones a week before your invoice is due!

Tactic 2:  Early Alzheimer’s I:  The Missing Document

“Invoice?  Oh, geez, your invoice! Y’know, I must have misplaced it somewhere.  I just can’t seem to find it anywhere.  Can you send me another copy?  How ‘bout that game last night, huh?”  

Bring up the name of an old girlfriend and Sam may have little problem recounting her physical attributes.  Mention a classic baseball game he saw recently and he could probably recite to you the entire box score.  Ask him how much a certain customer owes and Sam can probably tell you within three dollars off the top of his head.  But ask him what happened to the invoice that you mailed to him two weeks ago and suddenly he’s dumbfounded.  Businesses that lack proper accounting controls are fertile breeding ground for the “missing document” tactic.

COUNTER-STRATEGY: Fax a copy of your invoice in addition to mailing and call to confirm!

Tactic 3:  Early Alzheimer’s II:  The Lost Signature

“What?  No signature?  I’m outraged, absolutely outraged!  Hold on there…Sharon!  Didn’t you look at those checks?  Oh brother.  Well, yes I realize I can void the check and send you another, but I’d prefer that you return the check to me and I’ll sign and return it to you.  Regular mail is fine.  Take your time….”

Finally the check arrives at your offices but...uh-oh, there’s no signature on it.  Need I say more?  Without the right controls in place a customer can use this tactic to keep you waiting for your money even longer.  Just writing about this little delay tactic makes me chuckle – it’s so obvious, yet very effective.

COUNTER-STRATEGY: Consider credit cards or wire transfers for payment!

Tactic 4:  All Systems Shut-Down

“Oh, I have your invoice right here.  Why yes, we received all 97 line items on the order but unfortunately there is a problem.  You see, on line 86 I noticed that I ordered 10 spoons and only received 9.  So that’s why I’ve withheld the entire payment on your open invoice.  Now, what are you going to do to resolve this?” 

Now isn’t that fair?  It sure is to the client!

When a basic system of controls does not exist, a customer can use this weakness to an advantage by subjectively deciding to use one defective piece of an order as a reason to declare “all systems shut-down” and hold up payment on an entire invoice. 

COUNTER-STRATEGY: Call to confirm satisfactory receipt and fax confirmation!

Tactic 5:  The Upfront Disclaimer   

“Now listen here.  You should know right now that if there are any problems, I mean ANY problems, then I’m not going to pay, OK?”

This is when a client announces up front that payment will not be made unless she’s “completely satisfied” with the product or service to be delivered.  By using this tactic, she’s attempting to put her subjective approval on a payment, regardless of little things…like the facts, contracts or legal agreements.

COUNTER-STRATEGY: Confront the disclaimer head-on and right away.  Saying nothing can be perceived as acceptance! Instead, say something like this: “We’ll certainly fix any problems you have with our product but we also expect you to fulfill your  part of the contract.” 

Tactic 6:  The Good ‘Ole Country Boy

“Well golly gee willikers, I kinda thought you showed me how this newfangled cash register can give me reports of my beer sales, but it’s just not working. Something’s wrong with this dang-nabbit thing!”