Watch for new customers with a bad credit history. You can´t expect that a company or a person with a history of bouncing checks or paying their bills late will change their ways when dealing with you. If you must do business with the chronically late, lay down your credit rules early and firmly and start the relationship off slowly. Keep the amount of product or services you offer a company with an iffy credit record to a minimum until they´ve proven themselves worthy. And no matter how much you need the business, never start doing business with another person or company until you have a signed contract clearly stating and agreeing to payment terms.

Those who expect to get paid, get paid.

In the administration and control of receivables, attitude counts. We've discovered that if you expect to get paid, and the other party knows it, and knows you'll take action if you are not paid, you will get paid.

It's simple: If you take it seriously, they'll take it seriously. On the other hand, if you treat receivables lightly, and allow your customers to take advantage of you, they will. What does "taking it seriously" mean? It means:

Once you begin doing business with someone, make sure you stamp your invoices with the date that payment is due to you. Don´t rely on the customer to look at the invoice date and add 30 days -- or whatever your payment terms are -- to determine the pay date.

Don't Turn Your Back on Them

Extending credit to another company involves risk. Of course, in most cases, the risk is part of the cost of doing business, and it is acceptable . . . so long as it is managed properly.

Untended receivables can get out of control in the blink of an eye. And out of control is the first step towards being out of business. Here are some danger signals you can watch for:

Phone customers and start trying to collect the day after a payment is due. Never wait -- let them know that you keep close track of your accounts receivable.

Stick to your guns

It's called "sticking to your guns". When you set terms, be determined to communicate them and to stick to them, no matter what. Remember, a deal is a deal. You've fulfilled your obligations, now it's their turn.

You do it by stating your terms and intentions with clarity and firmness. If you are vague and easygoing about your terms, it's more likely that people you deal with will be vague and easygoing about paying you.

It's important to develop a set of reasonable terms and conditions, and it's important to make them part of your customer agreement.

Until a customer pays their bills, don´t do any more business with them. Do not bend on this rule -- you´ll only cause yourself more problems and scuttle any chance of collecting what you´re owed. If you really want to keep doing business with a customer who owes you, insist that any new products or services they receive from you are c.o.d. -- cash on delivery.

Say What you Mean and Mean What you Say.

We have already said that in order to prevent problems, it's important to set terms and stick to them. Now, extend that thinking to situations where a problem already exists and you're trying to collect.

Every time you make a contact with the debtor, you must use the call to:

To keep your control, you must keep your word. If you say you are going to call back for an answer or a response at 2:00 p.m. on Tuesday, do it. If you tell a debtor that you are going to cut off their credit, do it. If you tell them that the matter is going to a professional collector, send it.

If you keep your word, and do exactly what you promise, you will always have the upper hand, and you will have a better chance of collecting.

Be prepared

It is understandable that some people are reluctant to make collection calls. After all, discussions of money can be uncomfortable and nerve-wracking.

Organize your facts, discuss what you might want to say, and, most importantly, decide what you want to achieve with the call.

Make a list of objections you might hear, and determine how you will handle them. For example, what if the person you are trying to collect from responds with the classic line, "The check is in the mail"? Most people will feel relieved and say "Great! Thank you very much" and end the call. Big mistake. Your response should be:

Be persistent

From the Dun & Bradstreet website and Creative Debt Collecting by Dr Neil Flanagan

Mark Jackson from Precision Dental Ceramics prints this complete Customer Agreement on the back of his lab slips.

Here is a part of it:

THIS CUSTOMER AGREEMENT is made as of the date set forth on the reverse hereof, by and between PDCL, Inc. a  corporation (“Company”) and the customer set forth on the reverse hereof (“Customer”)., and WHEREAS, the Company values its customers and desires to avoid any and all misunderstandings between it and its customers regarding the terms and obligations of orders placed by the customers; and WHEREAS, the understandings set forth herein will help eliminate any potential misunderstandings as set forth above, NOW, THEREFORE, the Company and the undersigned customer, do hereby agree as follows:

1. While the Company shall use its best reasonable commercial efforts to prepare all products, work, services or shipments requested by the Customer in a timely fashion, the Company cannot and does not represent or warrant that the same may be prepared or delivered by any particular date. The Customer may not claim any offset or reduction in price for any alleged late delivery, discrepancies, shortages, claims or incorrect shipments.

2. ALL PAST DUE BALANCES shall incur and bear and Customer agrees to pay a late charge equal to two percent (1.5%) of any PAST DUE balance per month or portion thereof from and after the invoice date until the unpaid PAST DUE balance is paid in full, or as otherwise provided by the laws of your state. No late charges shall accrue during the first twenty (20) days from the date of the invoice (net 20 days). The late charge shall not be deemed to constitute payment of interest or a finance charge. Notwithstanding the foregoing, the above late charge equates to an ANNUAL PERCENTAGE RATE (APR) of eighteen percent (18%).

3. All payments made by Customer while a PAST DUE balance shall applied first to late charges and second to PAST DUE balances before being applied to current balances, unless elected otherwise by the Company.

4. All agreements between the Customer and the Company are expressly limited so that in no contingency or event whatsoever shall the amount of any late charge exceed the highest lawful rate permissible under applicable usury laws. If, for any circumstances whatsoever, any late charge hereunder shall involve transcending the limit of validity prescribed bylaw which a court of competent jurisdiction may deem applicable thereto, then ipso facto, the late charge shall be reduced to the limit of such validity, and if from any circumstances the Company shall receive an amount which might otherwise deemed to be interest in excess of such limits, the same shall be applied to the reduction of the unpaid principal balance due hereunder and not to be the payment of interest. This provision shall control every other provision of all agreements between the Customer and the Company.

5. Company shall, unless specified otherwise in writing by Customer, determine the method of shipping or transport. On all cases for delivery outside Jefferson County, the Customer shall be responsible for all shipping and transport costs including, but not limited to, the payment and maintenance of any shipping or transport insurance. Customer shall bear all risk of loss or damage during shipping or transport.

6. All orders/requests for products, work, services or shipments requested by the Customer shall be made in writing pursuant to the forms made available by the Company for such purposes. The Company reserves the right to disregard any other orders/requests. The Customer shall supply the Company in writing with all specifications and information reasonably required by the Company to prepare the prosthesis or appliance requested by the Customer. While the Company reserves the right to request, from time to time, further specifications and information, it expressly disclaims any duty to do so and may rely entirely upon the original specifications and information provided by the Customer without any duty of investigation. The Customer shall be solely responsible for the accuracy of any such specifications or information. Further, the Customer shall be responsible to inspect the products, work, services or shipments requested by Customer, including without limitation, all prostheses and appliances for proper application, fit, alignment and ultimate use. The Customer shall indemnify, defend, and hold the Company and its principals, shareholders, directors, officers, employees, representatives, agents, successors and assigns, free and harmless from any and all claims, liabilities, and damages, known and unknown, arising by reason of treatment of any patient of the undersigned or the actual application, fit, alignment or ultimate use of any prosthesis or appliance by the Company hereunder.

7. Any and all discrepancies, shortages, claims or incorrect shipments must be reported immediately to the Company by Customer and in no event later than ten (10) calendar days from the date of receipt. All notifications shall be made in writing and delivered to Company, provided, however, that Customer may notify Company orally, by telephone or otherwise, so long as it also contemporaneously prepares and delivers to Company a written record of such notification and such oral notification shall be deemed effective as of the date made. Unless notification is made and delivered as set forth above, Customer shall be deemed to have inspected and accepted all products, work, services or shipments of or by Company. The Company shall reasonably cure any discrepancies, shortages, claims or incorrect shipments for which it may be responsible only if notified as set forth above. Discrepancies, shortages, claims or incorrect shipments shall be handled as follows:

7.1.1 Errors, omissions or mistakes made by Company shall be corrected by Company at its own expense. Customer shall request a return authorization from Company which Company shall reasonably provide. The Company will not remake or otherwise remedy any prosthesis unless and until proper return authorization has been requested and provided. Upon obtaining a return authorization, Customer shall promptly return any prosthesis or appliance or product in question, clearly and conspicuously identifying the same pursuant to the return authorization, or as otherwise directed by the Company. The Company shall, at its option, either remake or repair any prosthesis or appliance in question or credit to Customer, in the invoice amount, for the prosthesis in question returned to Company as set forth above.

7.2 Errors, omissions or mistakes made by Customer may be corrected by the Company, and depending on the nature of the case, at the expense of the Customer; provided however, that it is the policy of the Company not to profit from the mistake of the Customer. The Company shall use discretion in any such matters.

8. THE COMPANY AND THE CUSTOMER ACKNOWLEDGE THAT REQUESTS FOR PROSTHESIS OR APPLIANCE IS MADE BY A LICENSED DENTIST AND THE COMPANY HAS PREPARED THE SUBJECT PROSTHESIS OR APPLIANCE TO THE SPECIFICATIONS OF THE CUSTOMER AND THAT THE CUSTOMER IS SOLELY RESPONSIBLE FOR SUCH SPECIFICATIONS. THE COMPANY MAKES NO WARRANTIES AND ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, ARE EXCLUDED. THE UNDERSIGNED FURTHER ACKNOWLEDGES THAT THE COMPANY IS NOT LICENSED TO PRACTICE DENTISTRY AND DOES NOT KNOW THE PARTICULAR CIRCUMSTANCE AND APPLICATION UNDER WHICH THE PROSTHESES OR APPLIANCES IS TO BE UTILIZED, AND THEREFORE, THE COMPANY DOES NOT AND CANNOT WARRANT THAT THE PROSTHESES OR APPLIANCES ARE FIT FOR ANY PARTICULAR PURPOSE OR THAT THE SAME IS IN ANY WAY MERCHANTABLE.

9. THE UNDERSIGNED FURTHER ACKNOWLEDGES THAT THE COMPANY DOES NOT AND CANNOT WARRANT THE PERFORMACE OR RESULTS THAT MAY BE OBTAINED BY USING THE PROSTHESIS OR APPLIANCE. THE UNDERSIGNED FURTHER ACKNOWLEDGES THAT IN NO EVENT WILL COMPANY BE LIABLE TO ANY PARTY, INCLUDING BUT NOT LIMITED TO PATIENTS OF THE UNDERSIGNED, FOR ANY DAMAGES RESULTING FROM ANY USE OF THE PROSTHESIS OR OTHERWISE, INCLUDING BUT NOT LIMITED TO, INCIDENTAL OR CONSEQUENTIAL DAMAGES WHETHER CLAIMED BY THE UNDERSIGNED, ANY PATIENT OF THE UNDERSIGNED OR ANY OTHER PARTY. IN ADDITION, THE UNDERSIGNED UNDERSTANDS THAT NO PATIENT OF THE UNDERSIGNED OR ANY OTHER PERSON NOT A PARTY TO THIS AGREEMENT WILL BE CONSIDERED A THIRD PARTY BENEFICIARY TO THIS AGREEMENT AND THAT NO SUCH PERSON WILL BE ABLE TO ENFORCE AGAINST THE COMPANY ANY REPRESENTATIONS OR WARRANTIES, IF ANY, MADE HEREIN OR BY THE UNDERSIGNED TO SUCH PATIENT.

10. This agreement shall be read in conjunction with the provisions set forth on the reverse hereof and with written work authorizations (including name, descriptions of products, work, services or shipments, etc.) shall be incorporated herein and all of which shall constitute the entire agreement between the parties hereto pertaining to the subject matter contained herein and therein and shall supersede all prior and contemporaneous agreements, representations and understandings of the parties. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver.

11. Should any provision or portion or this Agreement be held or otherwise become unenforceable or invalid for any reason, the remaining provisions and portions of this Agreement shall be unaffected by such unenforceability or invalidity.

12. Nothing in this Agreement, whether express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any person other than the parties to it and their respective successors and assignees, except as set forth herein, nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any third persons to any arty to this Agreement, except as set forth herein, nor shall any provision give any third person any right of subrogation or action over against any party to this Agreement, except as set forth herein.

13. This Agreement shall be binding on, and shall inure to the benefit of the parties to it and their respective heirs, legal representatives, successors and assigns.

14. If any legal action, arbitration or other proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute, breach, default, misrepresentation in connection with any of the provisions of this Agreement, the successful or prevailing party or parties shall be entitled to recover as an element of their damages reasonable attorney’s fees and other costs incurred in that action or proceeding, in addition to any other relief to which said prevailing party may be entitled.