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Credit & Collections Kit For Dummies® by Aaron Larson, Steven A. Harms

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Chapter 10

Closing the Deal: Wrap It Up in Writing

In This Chapter

Confirming agreements for payment in writing

Drafting a short but mighty agreement

Reminding your debtor to pay up

Memory can be very convenient. You probably aren’t surprised when a debtor not only “forgets” to make a first payment, but also “forgets” the amount of that payment and the date it’s due. After all, it’s to the debtor’s advantage to suffer shortness of memory when it comes to promised payments, particularly when the debtor is struggling with cash flow problems and wants to conserve its cash.

They say that promises are meant to be broken, and that’s particularly true of oral ones. After a promise is in writing, however, the rules change, because the written word is more difficult to “forget” than the spoken word, and a faxed copy of your agreement quickly overcomes the objection, “That’s not how I remember it.” That’s one of the reasons we stick to the mantra, “It just isn’t done if it’s not in writing.”

After you have an agreement with a debtor, you should wrap up your deals and payment plans by putting them in writing. It takes very little extra work and can really pay off for you. This chapter guides you through the process of getting your agreements down in writing, with tips on getting your debtor to confirm the written agreement.

Creating and Completing a Written Agreement

From the day your customer becomes your debtor, you’re looking at a history of broken promises. You’ve now negotiated the ...

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