Our Founder and Managing Director, Sheila Chadha reflects on an allergy holding many businesses back – and costing them thousands.

When it comes to being owed money, I often say to business owners who are having trouble being paid on time, ‘Are you allergic to making calls?’

With industry data showing that 86% of debt collectors still rely on telephone calls as a primary communication method, the reluctance to make these calls is costing businesses significantly. Yet time and again, I see business owners who would rather send their tenth email reminder than pick up the phone.

Of course, the reason this comes up is usually that they have complained that they have unpaid invoices going back weeks, months, and, in some cases, several years. Yes, they may have followed up on the outstanding sums. Typically, through reminders generated by their accounting packages or by personal emails.

Less often used are telephone calls or face-to-face requests. Talking about being owed money can feel awkward. Which is odd. By providing a product or service that is not paid for, you are effectively lending the recipient money. Even so, calls to chase money are often avoided by people to such an extent that they seem allergic to making them.

This is, clearly, wrong, and the most likely result is the highly undesirable one of cash owed that isn’t being chased up ceasing to flow and at times never coming in at all. But how do you know you have this ‘allergy’? Here are some symptoms to look out for:

Procrastination. You know you must get after the money you are owed, but everything else suddenly comes first, and – if you are honest with yourself – you know you’re just finding other things to do instead;

Putting the phone down before being connected. Say you have picked the phone up to call. Then you find yourself putting it down again before speaking. Perhaps you find your adrenaline pumping or face heating up and becoming flushed as your body reaches for its ‘fight or flight’ stress reflex;

Changing the subject when you are connected. This is Procrastination Plus! You make the call, then you discuss the weather, people you know, work gossip, maybe the latest sports results. When you put the phone down, that outstanding invoice hasn’t even had a mention.

If anyone should feel awkward in that situation, it is the person who owes money, who has created a debt for you to have to chase. But it doesn’t always work that way. Sometimes the person owing money is one you know well and personally. Sometimes you know they’re experiencing financial problems and you can’t face tackling them. Sometimes you don’t enjoy speaking with them and the idea of a conversation with the potential to become adversarial is off-putting.

However, what you – or your staff – need to remember is that reminders and chasing calls to people who owe you money are often more productive than emailing. An immediate response is more likely. A candid explanation is more likely. A fast resolution is more likely. The opportunity to negotiate and receive part-payment and set up a repayment schedule can be easier to achieve.