Pay It Forward
Vendor debt. Many clients come to us with overwhelming amounts of unsecured vendor debt. In many cases its enough to kill the business without any influence from secured debt. Our clients need relief or their business relationship with these vendors will cease. We use reason, reorganization, and logic to come to a resolution that makes the most sense for all involved… Be that better credit terms, partial deduction in principle owed, long term repayment schedules, and in some cases a complete write off of all debt owed.
However, even after the clients go through this experience that makes them healthy again and gives them a second chance, they still do not change the way they run their business. When collection their receivables, they act the way they hoped their creditors wouldn’t; Pay on time, as agreed, no other choices. Don’t get me wrong, if your business can get paid on time, as agreed, it should make every effort to. However, if your clients/receivables find themselves in a tight cash position, it is best to work with them, get paid what you can, and continue to do future business with them than lose the relationship all together over one invoice that happens to be 90 days out.
A word to past clients; Remember you were there once and got the help you needed to survive. Pay it forward. Not only will this help you collect, it will help you grow with your clients and to strengthen your business relationships.
It should be clear when someone is not going to pay you… They wont communicate with you about the debt they owe.. For these few, you have little choice but to sever your relationship and attempt to collect what you can through the means you have available.
However, for those customers/clients who reach out to you, ask for help, and have a plan, they are LOOKING to pay you and are trying to pay you what they can. Speak with them, negotiate terms, get paid what you can, and then move forward. Communication is key. If its there, take advantage of it and work something out.
