Ultimate Debt Collection Tip
Do not at any stage offer any extra discount for full or quick payment.
Discounts can be negotiated up-front as part of the deal,never tacked on at the end
If you agree to an extra discount you are rewarding bad behaviour, avoid offering any further discounts unless BOTH these apply:
- You think you have a very low chance of collecting this debt and you do not want to put any more effort into it, so the discount is really a trade-off against further effort.
- You are definitely not planning to do business with these people again.
Offering a discount on an overdue invoice, outside your already agreed terms, is REWARDING your debtor for paying late, and setting up the expectations that in the future late payment well also lead to another discount.
If you do decide to discount to ensure you collect some money, make it clear that is the end of your business relationship (or change your prices for this customer next time to “build-in” an amount to offset any discount expectations….