“I know it is only a small amount, but it’s the principal!” Of all the statements we hear on a daily basis, this has to be the most common. Yes, we are talking about pesky small balance debts. Frustrating and annoying in equal measure and whilst they won’t break the bank, it is still money you deserve. Collecting small balance debts requires a different approach though, so here are our Do’s and Dont’s:
Do:
-Chase up the customer every couple of days at least. If you don’t value the amount, then they certainly won’t either.
-Treat the amount like it is 10 times what it actually is. Add an imaginary couple of zeroes to the amount and watch your determination soar.
-Use reverse psychology. “John I know this is only a small amount, so if you have absolutely no intention of paying it, then please just tell me now so we don’t go wasting each others time”. This works incredibly well.
-Say please. This is a magic word that is often the difference between getting paid and not. “John I know this is a small amount, so can you please just pay it for me today so we can both move on”.
Don’t:
-Threaten legal action. You know, and they know, you aren’t going to sue them and threatening it just makes you seem foolish. The costs involved will far outweigh the debt.
-Get angry, yell or scream. Use reverse psychology instead.
-Forget to ask them if they can pay it then and there if you give them your bank details. Make it easy for them- small balances often get left unpaid because the customer has simply forgotten. Take this risk out of their hands, but ensure you sell it as a benefit to them- “John, I will text you our BSB and Account Number, can you please just pay it now so it is one less thing for you to worry about.
Cheers