Collections

[Jon Leer <jleer -at- LTC -dot- MV -dot- COM>]

Early Fall I asked members of the list how they would handle a customer who
is demanding quick turnaround on edits and source while delaying payment on
a sizable accounts payable. I had been doing work for this customer for
about 5 years. Suddenly, the customer decided to add more full-time writers
to the publications group and wind down my work. I indicated to this list
that I was thinking about turning over the source only after all or a large
percentage of the outstanding balance was paid, and asked for any comments.

I received several suggestions and was going to relay these to the list.
Unfortunately, my system died and during the ensuing rehabilitation, I lost
all of my previous mail.

Most respondents were adament about receiving payment before turning over
the source. Others, who noted my comment that during most of my 5 years of
work I had had a good working relationship and reasonable payment schedule,
suggested negotiating a partial payment immediately with the remainder to
follow.

I decided that I was fed up with the customers deadline demands,
uncooperation with delivery of information, and general confusion between
the various internal departments. I realized (finally) that I could live
without this customer and that I was tired of being dumped on.
Consequently, I called the Director of Accounting and sent an email to the
head of engineering stating that my company's policy was as follows:

"When a customer terminates or announces the termination of the working
relationship with Leer Technical Communications, any outstanding accounts
payables incurred by the customer must be paid in full prior to transfer of
source materials."

Both the accountant and the engineer whined that they couldn't pay
immediately, and in the next breath noted that they needed the source
pronto.

We subsequently negotiated payment of 75% of the outstanding receivables
and that all remaining invoices would be paid upon receipt. A few days
later I received the check. I dragged my feet a few more days before
sending the source.

Any further comments are appreciated.


Jon Leer
Leer Technical Communications
603-644-8627, 644-8628 (fax)
jleer -at- ltc -dot- mv -dot- com

Better Communication Means Better Business


P.S. If you have a collections story to share, contact me. I am writing a
related article for a business journal.