How hard do you push for payment before risking loss of a client?

As we promised, the JP Horizons team will try to address each question that was submitted during last week's webinar. One question that came in for Stephen Hillenmeyer asked, "How hard do you push for payment before risking loss of a client?"

Stephen responded...

I would hope and assume that someone in the company has a relationship with the customer. If so, I would first go speak with that team member in person. Everyone of us has probably had a situation that would justify a late payment. Find out if there is a reasonable reason they haven’t paid, make sure there are not any current service issues to resolve (especially if someone in the company has agreed to do so). Once all that has been done, you're clear to ask when they will commit to clear up the past due account. You will have to agree to the terms and use your judgment since every situation is different. Last, if you come to terms you both agree with and they don’t keep them, I would proceed to step up collections. First on my list is to put a lien on the property. I promise this will get their attention.