I Was in the Area, So I Thought I'd Drop In...

It's very hard to fob somebody off if they happen to be standing on the doorstep looking as if they expect to be greeted with open arms, so unannounced visits to customers can be a very good way of getting replacements for cheques that have been 'lost in the post' or an explanation as to why the account is overdue - or coming to an arrangement for settlement.

Do go armed with chapter and verse - copies of invoices, statements, delivery notes, and promises of payment (if any).

And do be prepared to deal with complaints and queries sympathetically. Obviously, if complaints or queries relate to only one or two of the invoices outstanding, then you should press for a cheque in settlement of those that are not in issue - but don't press too hard. You can always settle for part payment of the uncontested balance, the remainder to be paid when the complaint or queries have been resolved.

Most importantly - DO do your homework! Contact all the usual sources of information before you visit a defaulting customer - whether unannounced or by appointment. The Register of Judgments, Orders and Fines, The Individual Insolvency Register, any one or more of the many available debtor registers and/or your credit agency of choice will give you a very good up-to-date overview of your customer's situation.

If your customer is having problems then you are going to have to make a decision as to whether or how you are prepared to continue to trade with them. If you can talk about those problems knowledgeably, and have a proposal ready to present when you see your customer, then you will be in a much stronger position than you would be were you to have to make those decisions immediately off the top of your head, or go away and come back with a decision later on.

The whole point of visiting defaulting customers is to come away with something tangible - full settlement, part payment, or an arrangement for payment by instalments- and something intangible that's usually called 'goodwill'.

Your defaulting customer will likely not want to lose you as a source of supply - and you may not want to lose that particular customer. And times may get better. And memories can be long...