Collecting Old Invoices - Invent a Name

Collecting on invoices

is a priority for any business so cash flow doesn't get too tight. But what happens when clients don't pay? How about creating an alter ego to get the message across that you need to get paid!

A small business where the managing director is someone I've known has had trouble collecting invoices from clients - many of whom are much larger companies.

Because the managing director is also involved in helping complete projects for the clients, he felt awkward coming down too hard on them for letting invoices go 60 days, 90 days and longer. He didn't want to give the appearance that the company couldn't survive without the invoices, but he also needed the money to come in.

So he created the name of someone in accounting who was now responsible for the company's cash flow and collecting on unpaid invoices. The "new person" even had their own email account set-up and sent polite but to the point emails saying the invoices were past due and asking for payment.

So what happened if anyone called asking for the "new person"? Well, the person just happened to be out at the moment.

Calls weren't going to be likely anyway since the client base was small.

How did it work?

The tactic got some response and action on a couple of invoices.

More importantly, it gave the real person responsible to collect an alter ego to hide behind when he needed to "switch hats" by taking off the creative hat and putting on the collection hat.

How do you go about collecting on unpaid invoices and what advice do you have for others? Feel free to share in the comments.