Mr. Nice Guy. It’s such an easy role to play, isn’t it? Someone asks you for a favor — like some extra time in repaying a debt — and you feel compelled to say yes because we’re humans and that’s what we’re taught to do from an early age — be nice to one another. We’re taught to turn the other cheek. It’s a victimless crime, right? Giving someone a chance to get back on his or her feet and not make things too difficult?
It can be hard to make the choice to send an account to collections, as well, because you’re worried that the consumer will be upset and will stop buying goods and services from you. If you get a reputation for not letting people slide when they are late paying their bills, then maybe others will leave, too. These days, when it feels like everyone shares every little slight and grievance on social media, being nice seems to be more important than ever.
In today’s tough economic climate, it can feel even harsher to make the decision to send an account to collections. Everyone is struggling to make ends meet and more people are falling behind on their debts. You sending their account to collections can feel like throwing more gasoline on the fire.
But deciding not to send people to collections is not a victimless crime. You may not want to admit it, but you’re the victim. You and your business are the ones that suffer. The people whose payroll you are responsible for are the possible victims. The bills you have to pay and the expenses you have to cover are the possible victims. And, just as much as there are concerns about getting a reputation for being a hardass, you can just as easily get a reputation for being soft and able to be taken advantage of.
And, at the end of the day, ask yourself, how many of those people you give extra time to pay, do so without needing to be reminded — possibly on multiple occasions — that they have to pay their bill? If the answer isn’t, “All of them” then you know what you need to do.
Making the decision to send accounts to collections is never easy. But it’s necessary. You’re not an expert in collecting debt. You’re an expert in renting apartments or fixing people’s teeth or making them feel better when they are sick. Let the experts do what they do best so you can get paid and keep doing what you do best.