USA Best collections strategy

[ernie64]

Hello, I just started a new position as AR manager, and have to collect more than $1M from a very important client. Invoices are from 2010 (100K) and 2013 (900K). My question is about the best strategy on where to start and how to proceed:
1) do I simply start with the oldest invoices and work my way up?
2) do I start with the largest invoices, no matter their date?
3) or is it better to start with invoices that are fully open (as they would likely have less disputes), as opposed to those that are partially paid?

Thanks in advance for your advice!

 

[kirby]

Since the client is important you need to have a meeting with mgmt and ask what collection strategy they want you to follow.
Hard core with legal action? Soft core with no upsetting the client at all? Once you have direction then follow through on that. Also send out a memo to confirm the strategy else mgmt will somehow forget what path they asked you to take and blame you when they do not like the results.

For the 2010 invoices the client may be within their rights to tell you to get lost. Those are probably past your state' s statute of limitations and if so are uncollectible.

Get the salesperson who has the account involved and informed about your efforts. See if you can get them to help figure out why the client is not paying.

Good luck. This is a tough job

 

[kirby]

You can get the client to reaffirm those old 2010 invoices but you will need an atty to tell you how