While driving into work this week listing to a talk radio show (yes, I still listen to the radio), the R word was mentioned and naturally, it almost put me in panic mode. What’s the R word you ask? Recession.
Some economic forecasters are predicting Ontario will see a recession, while others do not. With the way the cost of basic living is going these days, and the uncertainty with our economy, in my opinion it’s always a good idea to prepare ourselves.
While individuals can scale back on certain spending and build up a savings, what can businesses do to ensure they are prepared?
This always circles back to keeping an eye on your receivables, and going back to 30-60-90 sue® method. As a fresher, the 30-60-90 sue® method is effective when you follow these three steps:
- after 30 days, send a gentle reminder of the overdue account;
- after 60 days, send a firm reminder and advising you expect payment; and
- after 90 days, advise you will sue if payment not received within 5 days.
While stern letters coming from you may not be effective, sometimes all you need for that 90-day reminder is for it to come from your lawyer. That shows your clients that you mean business.
Our litigation team is great at sending demand letters, and often that’s all that it requires.
While you may have some clients that you don’t want to push, just remember, you are running a business, you work hard, and you deserve to get paid.
Christne Allan, Sr. Law Clerk