The home office entrepreneur faces similar dilemmas as the high-tech corporate owner, especially where it pertains to slow or delinquent account receivables. There just is NO magic demand letter or collection tool that prompts the dead-beat customer to own up to his or her obligation. It is always a struggle to collect.

What is the solution to collecting what is rightfully yours?


Besides ruling your business with a strong hand, you need a firm contract in place. However, even someone who signs a contract that seals the deal and lays out in layman terms what would happen if there is no payment can be challenged. The dead-beat customer does not care what hoops you have to jump through to collect.

If you are dealing with a local customer, you stand a better chance. Why? The dead-beat customer knows you could make their life HELL if you took the collection phase to the legal system. With you being in the same state, this is the best option for you.


How do you collect if you are a virtual business owner?


Sorry to say that if you are operating a virtual business and trying to collect from someone hundreds of thousands of miles from you, the likelihood of seeing what is owed is SLIM. First, the dead-beat customer knows you will not pay hundreds of dollars to travel to their location when you are attempting to collect less than $500. Second, the resources you have in collecting are limited unless you are prepared to pay collection agencies. Third, dead-beat customers are good at avoiding cyber bulling by not giving you their correct contact information in the first place.


What business solution will help me collect, then?

A virtual business owner needs to be smarter than the virtual customer (client) is. This starts with a solid contract.

1. Hold your customer to a contract: Make sure he or she signs it and provides you with their legal information.

2. Confirm contact information: Do not be afraid to search for the customer’s information. If you provide Business-to-Business services, it is even more crucial that you take some time to ensure the contact information is correct.

3. Do a background check with the BBB Online: Check to see if the party you are engaging in business is worthy of your services.

4. Get a retainer for your services: Ask for a retainer to secure your business relationship. If the customer does not want to pay you a retainer, think twice about working with them.

5. Contract a collection agency: If you are just now reading this article and you are due money because you didn’t take the right steps, you can contract a collection agency to collect.

The best action is to be prepared to take action. Do not believe that because someone tells you they have LIKE business ethics that they will not walk all over you in the end. Conmen practice this statement of faith, which is why they are so good at what they do.