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last long. Businesses need information on people who apply 
for credit. They will get the information somehow. If 
businesses can't do credit checks through someone like CRAA, 
then no doubt they'll find another lawful way. Find out how 
other businesses do it, then do it too. 
On a company, you can get information like this:
(a) Trading address and registered office.
(b) Incorporation details, issued shares and paid capital.
(c) Details of directors.
(d) Writs and summonses served and outstanding court 
judgments. 
(e) Default information, including written-off accounts and 
accounts referred to a collection agency. 
(f) Which mercantile agents have made inquiries about the 
company. 
So if someone who asks you for credit is in financial 
trouble, you'll know it before you start doing business. You 
can tell him: sure, send us the $6200 and you can have the 
(whatever it is). If he huffs and storms and threatens to 
take his business elsewhere, let him. Let one of your 
competitors have the loss. Now I realize it's easy to say, 
"Keep your credit tight". I know the temptations. The sales 
staff are selling, selling. Maybe business isn't too good, 
and you really want  this sale. But I repeat: the easy way 
to get difficult debtors to pay is never give them credit to 
start with. Money up front, or no sale. 
But even if your credit checks are squeaky tight, you still 
won't avoid all problems. A debtor can 'go bad' for a 
hundred reasons. He can be a first-rate customer for years, 
then something slips. Instead of paying in 30 days, all of a 
sudden he drifts out to 45 or 60. Or maybe a check will 
bounce. Or something else that's not just quite normal. This 
should start to ring little bells. You should find out what 
the problem is. Use your credit reference agency. If that 
doesn't show any ominous signs, then phone the customer. 
You're entitled to find out what's happening -- you're 
providing the customer with credit. 
The customer might say, "Accept things as they are, or we'll 
go somewhere else." That can put you in a quandary. Maybe 
he's spending $10,000 a month and it's an account you don't 
want to lose. But really, you might go for three months 
without getting paid. Maybe $30,000. And if he doesn't pay 
in the end, it means you might have to find $300,000 in new 
sales to make it up. 
I urge you to get this credit checking right before you 
worry about the rest of the things in this book.  You can 
stop reading right here, and do very well for yourself if 
you just do that. Better than many businesses, I can tell 
you. 
Another suggestion: treat your sales and credit people as 
equals. Pay them the same, push them the same. Invite your 
credit manager to some of your sales meetings. If your 
credit manager has guts, he might say something like, "You 
bastards out there make the sales, but I can't get the 
money. Don't you eyeball them? Look, so and so is paying on 
90 days now. Is he earning a quid? Or is he slow as hell out 
there, with no contracts? Is there lots of stock around? Let 
me know. You might try picking up a check too, next time 
you're there." 
Then get it in writing.
THE MORE you get in writing, the stronger your hand will be 
if the debtor goes bad. If you have  to go to court, your 
case will be tight. (But usually, with lots of signed 
documents in your hands, you probably won't need to: the 
debtor will realize his position is too weak.) 
I know this isn't a popular topic. All that paperwork hassle 
-- for what? It feels like driving with the brake on. But I 
wouldn't be doing you a favor if I didn't at least mention 
'credit management' (the right term for a system for 
checking out your customers, and keeping all the 
documentation straight). 
How much documentation you use -- and what sort -- depends 
on the size of your business, how much bad experience you've 
had with debtors, how much you know about credit management, 
how tolerant your customers are about signing papers 
(including directors guarantees), and a hundred other 
things. But whether you know it or not, you already  have a 
credit management system: it might be good, or less good, or 
downright lousy -- but it's there. 
You may be relieved to know that I'm not going to mention 
anything else about this topic. (As I said, I've found that 
people really don't like to hear about it.) But that doesn't 
let you off. If you get your credit management wrong, it 
will come back and thump you. If you get it right, you'll 
get your money almost every time. But to get it right, you 
may need help: if you feel shaky on all this, you can join 
the Australian Institute of Credit Management and let them 
help you. 
Simple Ways To Collect A Debt Yourself
LET'S SAY you've got a bad one. The money is way overdue, 
you've called a few times -- now you're convinced it isn't 
going to be easy. What should you do? 
I wish I could list nine easy steps. It's not that simple. 
First, it depends on the size of the debt -- $31 calls for a 
different strategy than $1200, or $34,000. It's different 
chasing an individual than chasing a company. If it's a 
company, it depends on the size of the company. It can also 
depend on how important you  are to them.  
Let's look at the main categories, then list things that 
often work. But caution:  don't follow any of this 
slavishly. Use common sense and a bit of psychology. We're 
dealing with quirky, obstinate, vain and wonderful humanity 
-- even if they are debtors. You  know the history of the 
debt, and you know what the debtor is like. Use everything 
you know. Use it skillfully to turn up the pressure. 
Little Debts Owed By Individuals
1. Write them a letter, saying it's unlike them not to pay 
promptly, and please could you have the money. Use a bit of 
shame on them. 
2. Keep phoning them, politely but firmly. (Keep threats out 
of it, but keep records of the calls you make -- they may be 
useful later.) Just wear down their excuses and hope they'll 
get tired of it all. By and by, it may seem simpler for them 
to pay the $31. 
3. If a check is there (they say) but for some inventive 
reasons it never gets sent, say you'll send a courier around 
at 10.45 to pick it up. That often works wonders. 
4. If it seems worth it, send someone from your office 
around to pick up the check. If you can afford to do this,