The title of this article may contradict everything you’ve heard about collections and getting customers to pay on time, but there is a way to keep your customers even after the collection process.

And it’s all in the way you structure your accounts receivables program from start to finish.

While collections might be a touchy subject in this economy, the fact is you still need to get paid for what you do. How you approach it, how flexible you are and how diplomatic your collection process is will determine how successful you are in getting paid.

Now, you won’t be able to save every customer that falls behind or does not pay. But by thinking just a little differently in your approach to getting people to pay, you could improve your cash flow and keep those customers coming back even after the collection process. And remember this golden rule of getting paid: The longer a bill goes unpaid, the harder it becomes to collect on.

Here are some tips to help you improve your collection process while increasing your odds of retaining customers:

• State your payment terms up front; Make sure your customers are fully aware of your payment terms in advance of service. You can do this verbally, on your contracts and, of course, on your invoices.
• Invoice on a regular basis: This may sound simple, but that fact is, many do not invoice on a regular basis. There are two ways of doing this: Invoice at the time of service, or invoice on a set day of the month, such as the first of the month. Don’t wait until you have time. Make the time.
• Customer service calls: Here comes the diplomacy part. Once an invoice goes unpaid, say at the 30-day mark, place a good old-fashioned customer service call. Check in on the customer and find out if there was any issue with the service you provided. Then, bridge into the late payment and see what you can do to find out when they will pay. It’s a good idea to send a statement at day 30 as well.
• More calls and a statement: Starting at day 45, make another call; at this point, the call should be about the late payment. The first sign of someone hesitating to pay is when they stop communicating, so keep the lines of communication open. Another statement should accompany your call. In seven days, make your third attempt at placing a call to find out if your customer intends on paying. If that goes unanswered, then the intent of your customer may be becoming clear at that point.
• Hire a reputable collection agency: If you still have not been paid at day 60, it’s time to bring in a third-party collection agency. It should be no surprise to the customer at this point they have been sent to a collection agency. Ask within your industry for a referral, ask your colleagues, and check references. Make sure the collection agency has some experience collecting in your industry. And make sure it aligns with your goals. If you want to try and keep your customer, make sure you tell the collection agency of your intent.

It also makes good business sense to have a relationship with a collection agency before it’s an urgent need. If you’re in an industry that sees regular late payers or defaults, you’ll want to have that system in place before it’s too late. A reputable collection agency will offer a whole host of services to fit your business, including flat-fee collections that are much more affordable and by nature, diplomatic. And you can have a system already in place for when you need it.

One last tip: Don’t take it personally when people don’t pay you. To be in business means that you’ll have a certain amount of bad debt. It happens. As long as you have a system in place for dealing with it and act in a timely manner, you’ll know you did what you needed to deal with the problem.