Issue link: http://psai.uberflip.com/i/1394762
PSAI Association Insight, July 21, 2021 I 11 • Check with the relevant governmental authorities to see who was on the permit. Whether your non-paying customer was from a job site or a special event, they probably had to pull some type of permit to carry out the activity. The permit paperwork may yield more information and allow you to follow up with the permitee. Even if you don't gain more information, you can report your experience to the authorities to take under advisement in considering whether to grant future permits to the individual(s). • Depending on the size of the invoice, consider hiring a collection agency or taking the customer to court. Sometimes it's hard to walk • They just don't want to pay, arguing they shouldn't have to give you money until you do something to earn it. If someone doesn't want to pay up front, it's a warning sign. The terms suggested above are common business practices. Have you ever paid for a movie on the way OUT of the theater? Or for a plane ticket when you arrive at your destination? Of course not. There's nothing unusual about getting paid up front. So if someone insists that you are out of line for requiring it, seasoned portable sanitation operators say "run!" • If a customer plays the "don't you know who we are?" card, use that in your favor. Typically you will hear this if it is a large firm whose representative gives you some variation on, "We're a huge company and that's not how we do business; I can't get that approved." You can come back with, "As a large company, it is surely not an issue of lacking the funds. So if you need these portable restrooms, we'll need to find a way to transfer the funds before delivery. How can I help?" Big firms—and governmental customers—with entrenched payment policies are notoriously bad at paying quickly. If it's a risk you are willing to take, go in with eyes wide open. If not, you may be better off letting your competitor have this one. If the Worst Happens, Do What You Can to Minimize the Effect on Your Bottom Line No matter how careful you are, sooner or later you may find yourself in a situation where you've been stiffed on a good- sized invoice. Assuming you've taken all your usual steps to collect the money and it just isn't getting paid, there are a few things you can do in addition to learning from the experience. away, and sometimes there is just no reason to do so. If the invoice is large enough and it makes sense to pursue them in court, consider doing that. On the other hand, you might want to sell the invoice to a collection agency. You'll have to take a discounted amount, but it's better than nothing. • Look for the best way to book the loss for tax purposes. The silver lining—relatively speaking—is that you can usually use the loss to reduce your taxable business income. Make sure you explore the angles with your accountant or tax attorney so that you can make the best of the bad situation. Effective Credit Practices Keep You from Getting Stiffed (continued from page 10)