Do’s and Don’ts for collecting small balance debts

Hi guys, chasing debts under $300 sucks but given it is a perennial problem for small businesses, I hope this helps you all:


– Contact the customer the moment it falls due
– Be persistent and don’t give up if they aren’t responding. The last thing you want is them telling their friends that you don’t pursue small balances
– Use reverse psychology. Instead of asking them to pay, ask them if they have any intention of paying or not as you don’t have the time to keep chasing such a small amount
– Get them to pay at least $50 that day as a show of goodwill


– Discount the debt. This is a huge no no- it diminishes your brand, makes you appear desperate and lessens the chances of them actually paying. Remain steadfast.
– Sue them. It’s not worth it guys honestly, even in small claims.
– Sound desperate. Even if you are, make sure they think you are pursuing it out of principal, not because you need the money

Hope this helps guys.


Do’s and Don’ts for collecting small balance debts

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