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A $5 Trick for Collecting What You’re Owed

By Paul Lawrence

There’s a way to increase your chances of collecting from a delinquent customer – or anyone else who owes you money – without worrying about a potentially nasty confrontation. Here’s how…

In a firm but professional manner, write a letter demanding payment. Then send it by certified mail. It will cost about $5.

Unlike phone calls and e-mail messages, certified mail is hard to ignore. And it’s intimidating to have someone in an official capacity (the letter carrier) require your signature. Not only that, but people who are somewhat educated about legal procedures will recognize that this could be your final step before you take legal action. (Certified mail is frequently used to establish that an effort was made to communicate with the target of a lawsuit.) That could be the impetus they need to pay up.

[Ed. Note: Part of being in business is dealing with delinquent customers. But Paul Lawrence - who spent about five years as a collections manager for two national retail chains - can help you get the money you're owed. He explains the collection methods that work in his "Getting Paid Without a Hassle" program.]

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