Running a Branding business means that I divide my time between the things that I love doing (project planning and dealing with people) and the things that I don’t enjoy so much (business planning, accounting and debt collecting).
Along the way, one of the facets of business that I’ve had to learn is how to handle those very rare occasions when people seem reluctant to pay promptly. Oddly late payers are rarely those who owe thousands for regular orders, but instead owe very little for small quantities of clothing or merchandise done at the last minute, to help them out!
What at first might seem like a simple oversight, can become a long and drawn-out series of repeat invoices and statements, phone calls, emails or reminder letters. You might, in the end, spend more time chasing payment than you spent on the order. With every email or phone call – your profit diminishing.
To me, late payment is rarely an issue about money and more about a lack of respect. This is particularly true if you are unfortunate to work with people who expect you to respond quickly to service their needs, but don’t apply the same standards to yours.
So, I chose to abandon a stiff business approach of debt collecting and instead write one email, carefully worded to express how I personally felt. After all, business may be business, but people work with people.
Hi [..],
A quick note to say that I am really disappointed that you have still not paid the [..] that Purple are owed for the order you received. In the grand scheme of things, it’s not a lot of money, more a matter of respect.
I would like to think we have always been there at the drop of a hat to sort out any requirements and last minute merchandise you might have. I love working with you and have always taken our relationship as more than just client/supplier. Although if I can’t rely on you paying promptly or it takes several attempts and reminders to get our money, that’s just not good business as it diminishes any profit, just by the time it takes.
I’m not saying that I don’t want to work with you, or have your business. As we really do. But if we don’t receive the outstanding amount within the next couple of days, we will have to think twice about helping you in the future.
Kind regards
Amanda
This exercise taught me that even the trickiest situations can be handled better and resolved faster by plain, honest speaking. After all, we are all just people and if we treat others as we like to be treated we should be OK.
