Gradually Increase Assertiveness

• Start your attempts to collect on past due accounts with a positive correspondence. Communicate with your customer to find out why the payment is late. Offer to be helpful in your first letter; your customer may have simply forgotten to pay. Your second or third correspondence can show concern about their circumstances. Increase the assertiveness of your communications gradually over time.
  
  

Use Multiple Channels of Contact

• Use email, fax, mail or courier to deliver collections notices. Email is easy and convenient, but your message could wind up in a spam folder, buried beneath other messages or assigned low correspondence. Use as many points of contact as possible.
  
  

One Person to Handle Receivables

• Some businesses automatically assume that having a sales force in charge of accounts receivable is the best strategy; but it's better to put one person in charge of handling things, according to the Small Business Notes website. Provide one individual with the proper information, training and support to handle small business debt recovery effectively.
  
  

Outsource to a Collection Agency

• After sending letters, making phone calls and making other attempts to collect on a past due account, it may be time to turn the matter over to an experienced collection agency. This can be the most cost effective approach since too much time spent collecting on overdue accounts can affect bottom line profitability.
  
  

Become Familiar with FDCPA

• The Fair Debt Collections & Practices Act (FDCPA) established laws and regulations about how collection agencies must go about collecting past due debt. Collectors are prohibited from lying, misleading or harassing customers in an attempt to collect a debt.
  
  

Small Claims Court

• If you've tried to collect payment on your own and through a collections agency without success, small claims court may be the next step at recovery. This could be a way to get a quick judgment in your favor. You can sue for any amount, up to $15,000 in some states. All that is required is that you pay a small filing fee and a fee for postage. Keep in mind that even if you win, the defendant has a right to appeal the judgment. You can represent yourself in court, but it's advisable to have an attorney present if possible.