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How to Collect On Overdue Invoices in Your Foreclosure Cleanup

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					How to Collect On Overdue Invoices in Your Foreclosure Cleanup Business
Foreclosure Cleanup Business: How to Successfully Collect on Overdue Foreclosure
Cleanup Business Invoices

Part of business, any business, encompasses bill collecting. A foreclosure cleanup
enterprise is no exception. Foreclosure cleanup encompasses the interior and exterior
clearing out, cleaning up, repairing and maintaining of homes that have been
foreclosed upon. As a business owner, if you have outstanding invoices in your cache
of foreclosure cleaning paperwork, here are some insightful tips to help you collect on
what may be thousands of dollars in outstanding invoices.

Bill Collecting Scenarios

As the owner of a foreclosure and real estate cleanup business in Atlanta, GA, I
personally have had four scenarios where I've had to be a bull-dog collecting
outstanding invoices. One was from a realtor colleague; another, a large property
preservation company in another state; the third, a real estate broker who'd given my
company a great deal of work; and the final one, just recently, was from a private
investor (this one was not really late; they simply did not want to pay the final fifty
percent because they wanted us to remove an automobile from the property that was
not part of the original estimate). But, ultimately, all four collection processes yielded
checks for work performed.

Standard Bill Collecting Tips

Here are some standard bill collecting tips that can help you collect monies due your
company for foreclosure cleanup work performed. Contact your clients immediately
upon the invoice(s) becoming late. Present them with another copy of the invoice(s)
via fax or email as quickly as possible so they can have quick reference. (It really just
may be an oversight; give the client the benefit of the doubt initially.) If the client still
does not pay the invoice in due time, call them often to remind them of the overdue
invoice, keeping legalities in mind. (Some clients may request that you only contact
them in writing.) Be professional in your dealings, but be firm and consistent in your
contact. Squeaky wheel gets the oil. Where necessary, offer a payment plan
arrangement to the client. Remember, ultimately you simply want to collect your
money. It's not ideal to get paid in dribs and drabs; but it will certainly beat not getting
paid at all. If your attempts prove futile, don't discount turning the account over to a
lawyer or collection agency. If you are still working for the client, tell them you
cannot perform any more work for them until the overdue invoices are paid.
WARNING: You may lose the client; but it will beat working for free.

Keep it Legal

In conclusion, remember, use only "legal" tactics when collecting on overdue invoices;
try as best as you can to preserve your company image when working with those who
owe you -- this may not always be possible when you're threatening to sue someone.
And, finally, ultimately, keep the end goal in mind: collecting your money for work
performed.

Real estate, in any scenario, is a tough, tough industry, and if you're soft in going after
monies owed you, you'll find yourself busy as a bee, but working for free.

Learn from Bill Collecting

Always use experiences like bill collecting from which to learn, grow. Perhaps revisit
the scenario that landed you in a position to have to "bill collect" and tweak your
industry contract (our foreclosure cleanup contract has been revised several times).
Also, dissect how you came about this particular client who does not want to pay or
who is not in a position to pay. In short, muddle the bill collecting scenario and
examine what you could have done differently to avoid overdue invoices. Likely, it's
not (or won't be) your fault at all; but the savvy entrepreneur will examine all nuggets
of a negative situation and vow to learn, grow, and become stronger and better in their
businesses as a result of the experience.

My mama used to say, "You can't avoid how people behave, but you can learn from
it." She was right. In large part, most clients will pay and pay on time; but some
clients will inevitably try to skip out on invoices. But if you present a no-nonsense
front, go at them hard and fast from the beginning, and have your contract, procedures
and knowledge of area legalities in order, you will collect.

Good luck with your foreclosure cleanup business.


 Cassandra Black is the Author of How to Start a Foreclosure Cleanup Business:
FREE Articles & Advice Blog and the How to Start a Foreclosure Cleanup Business
Line of eBooks and Related Products. Cassandra is also the CEO of Foreclosure
Cleanup, LLC, Atlanta, GA and TheCassandraGroup RE, Atlanta, GA.

				
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posted:2/11/2011
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