Billing and Collecting Basics

Why Members Don’t Pay?

Why Customers Don't Pay

  • They Can’t!

    Loss of Income
    Loss of Job
    Large unexpected expense(s)
  • They Won’t!

    Dispute with service provider
    Need or want to end contract before stated date
    No longer need or desire services

What It Means To You:

  • If a customer doesn’t have money, they can’t pay. This is real. Put services on hold, cancel it, or make alternative payment arrangements as soon as possible. Understand that it may take a while to get your money, you may only get part of your money or you may get nothing at all.
  • Customers disputing the quality of service or lack of service are legitimate complaints that need to be addressed. However, many times customers raise false or questionable issues in an attempt to get out of a contract.
  • Having a good service agreement is the first and best step at collecting your money in the event a member can’t or won’t pay.  Outline how and under what circumstances a customer may cancel their service.  Review what steps will be taken in the event of a service dispute, and define all return, late payment and collection costs if it becomes necessary. 
  • An enforceable contract is your best protection against “they won’t”.  When “they can’t," understanding and patience is your best alternative.