Get a Binding Commitment

Collecting an account often means negotiating for settlement and - these days - being prepared to accept lesser sums in full and final settlement, or lengthy repayment periods.

Many debtors deliberately put their creditors in contact with employees who have limited authority and can't make binding commitments on behalf of the debtor company so as to give themselves a potential 'out' from any arrangement.

If you have 'friends' within the debtor organisation, you're unlikely to fall victim to that particular tactic, but if you don't know your debtor that well, you'll need to find out the names and titles of people who are definitely in a position to make a binding commitment to pay your overdue account before you make even an initial approach.

You can do this by ordering a Company Search. Once you have the names of the Managing Director, Finance Director, and Company Secretary from the Search, a quick telephone call to the debtors main switchboard might get you e-mail addresses and even direct line numbers - and it's never too late to try to make appropriate 'friends', so try to find out who is handling your account at the same time, and plan to make contact with that person, too.

It's a good idea to collect as much current information about your debtor as you can before you begin negotiation for settlement. Ordering a Company Search, checking The Register of Judgments, Orders and Fines, The Individual Insolvency Register, and any one or more of the many available debtor registers will enable you to find out more about your debtor's real situation. And, of course, you shouldn't forget the internet. Websites and social networking profiles can be a mine of useful information about companies and people.