CHECKLIST TO
IMPROVE
COLLECTIONS
[YOUR COMPANY NAME]
[DATE]
CHECKLIST
METHODS TO ENHANCE COLLECTION OF ACCOUNTS
It is unavoidable that some customers that you lend credit to are going to be late with their
payments. Actually, it is certain that some of those customers are not going to pay you at all! The
following actions can help improve your chances of collecting your accounts.
● Demand payment by cash or credit card whenever possible.
● Encourage customers to pay sooner by offering discounts for payment within a specific
period of time. For instance, you could offer a two percent discount if an account is paid
within ten days rather than thirty. Discourage customers from paying late by charging
interest or late fees on delinquent accounts. Be sure to consult with your attorney first to
ensure that you are adhering to your state’s usury statutes and applicable federal laws.
● Personally visit your customer to discuss a past-due bill, or talk to your customer when he
or she visits your business, whenever possible.
● Call your customer about the past-due bill in situations where you cannot personally visit
them.
● Send a few “reminder” letters to your customer if talking to him or her personally is
impractical, or if the amount unpaid is relatively small. The first reminder can be friendly
in nature. The second letter can be a little more forceful. The third letter can be a “final”
demand before you turn the account over to a collection agency or to your attorney.
● Use a collection agency to collect a past-due account if attempting to collect the account
takes too much time or if you have previously failed to collect. Collection agencies often
charge a significant percentage of the amount of the debt as its fee.
● File suit in small claims (conciliation) court if the dollar amount of the past due account
is below the maximum amount allowed for such claims.
● If the amount owed by your customer is higher than the amount allowed by your local
small claims or conciliation court, request that your attorney file a lawsuit to collect the
account.
