Featured Coaching Training: 6 Thunder Moves for Collecting Accounts Receivable
Struggling with cash flow and collecting accounts receivable? In this series, we'll teach you super moves that will improve your business' collection practices and ability to ensure that money is coming into the business for everything you sell.
Featured Coaching Excerpt - Notes & Transcript, Part 1
Collecting Accounts Receivable: Thunder Move #3 - Cash on delivery / Collect at the Time of Delivery
Leprechaun Riding a Unicorn:
Clark Family :
Lesson Nugget: When requesting payment, a good strategy is referring to someone above you.
- Thunder move number 3, "Cash on Delivery," collect at the time of delivery. So Clay, why is this important? Why is this a thunder move for all our Thrivers?
- Because there's no reason to extend credit to unreasonable people. I mean you just, you can't do it. I'm beating a dead horse. I'm gonna keep saying it-- I'm gonna keep saying it over and over and over but you just have to insist on getting payment when the person gets the stuff. If we go out for groceries today guess what's gonna happen. When you go there you're gonna get your lettuce. You're gonna get your meat. You're gonna get your agnus beef; whatever you're gonna buy. You're gonna get your organic, farm-raised shrimp and they're gonna say, "Hey you wanna do debit card, credit card, or check?" They're not gonna sit there and negotiate with you, give you an invoice and allow you to walk out of there going, "I got my shrimp! Yeah! Woo hoo!" They're not gonna call you a month later and go, "Hey do you wanna pay for your shrimp?" I mean, no, it's dumb. Quite doing it! Stop doing it! And if you're working with the government-- someone here is listening and going, "I work with the government and I have to extend them credit." Then that's a unique situation but that's a unicorn. That's a--- That's like a-- horn in the middle of a-- It's a horse with one horn.
- [Mark] Um.
- Very uncommon-- They fly.
- [Mark] Um. You now they-- That's my horse sounds. They're kinda--
- [Mark] Yeah.
- That's what that is.
- That's kinda like the white moose.
- Can you make any leprechaun noises?
- [Clay] That's like a leprechaun that's riding the white, unicorn horse. That's like a-- You know what I mean? I can't do a good leprechaun voice. "They're after me Lucky Charms."
- [Mark] So--so--
- [Chad] "They're after me Lucky Charms."
- For all of the thrivers I wanna just role play through this because I know that a lot of them are going to have to transfer over maybe some of their clients that are used to this 30 day invoicing process.
- [Clay] True dat!
- So, I wanna go through this with you just briefly to transfer them onto a cash on delivery system.
- [Clay] Yeah.
- [Mark] Okay?!
- [Clay] Now real quick, real quick for Thrivers. You know Thrivers, you know I have 5 kids and I have a couple of kids I bring into the studio on occasion so if you hear any background noises right now-- If you google my name and then fast company we talk about this.
- - [Mark] Sure.
- [Chad] How we bring people into my, bring my kids into work, there. So I'm gonna just kinda look at one of my kids here and just go kinda into like, Shhh! Shooshkies mode! Shooshkies! Shooshkies! And back to you, Mark.
- [Mark] Okay, so we're going to role play through this real quick. So, Clay, I want to be the client, okay, and I want you to show all the Thrivers how to specifically ask for the payment at the time of delivery.
- [Clay] I'm a basketball coach.
- Okay, you're a basketball coach.
- Hey um, so uh, Marshall, did your kid have fun today at practice?
- Yeah, it was really good. I feel like he's learning a lot.
- Awesome! Well, hey man, I just wanted to square up with you as far as payment goes. I just need to get like a debit card or credit card and we'll knock it out. Oh, okay. Um, well, can you like-- Can I do that online or--
- [Clay] Well, what we did is we actually set up a system where we can go ahead and pay right now debit card or credit card and I'll give you a receipt right now.
- [Mark] Okay.
- Um--Well, I left my, I left my check book at my house so maybe I can --
- [Clay] Here's kind of the deal and I hate to be that guy but right now we're-- In order to keep our prices low-- We had so many customers that had been bouncing us checks and not paying on time, that kind of thing. We had to come up-- my partner wants me to set it up--"My partner--." Always refer to a higher power. My partner wants me to do this and I just have to do so kinda, debit card or credit card?
- [Mark] Ok, well, I--I think--I mean-- I have this card that, you know, I go to the store with. So, is that gonna be okay or--
- [Clay] Yeah, we can do debit card or credit card.
- [Mark] Ok. And that's how you do it.
- [Chad] That's how you do it!
- That's an air horn!
- [Mark] Uhh!
- [Chad] "They're after me Lucky Charms."