• Monitor accounts receivable and have accounting software that flags those that are past due. Get software that will warn you when a bill is 90 days late. Then immediately call the offending party and ask when you can expect payment. Also take note of whom you talk to and when you made the call.

• Follow up those phone calls. When you make your initial call, get a payment promise and then still does not get a check, call them up and say, ‘That darn Post Office. I haven't got that check you mailed to me.’” You asks the customer for the check number and the date it was mailed. If you meet resistance, "say, 'You really need to pay this because it can ruin your credit.' and remind them, too, that your a small business and if nothing else, they should make their payments out of good faith.

• Put payment terms into contracts. Spell out payment obligations and be specific about when you expect the full bill to be paid. We suggest 30 days.

• Develop a collection policy and procedure manual. This should spell out credit approval procedures, when charges are due, procedures to follow when bills are late, and when to allow exceptions.

• Post a sign in your reception area or at your door that says payment is due at the time of service.

• Set up a credit card machine. It's amazing how many people say, 'Do you take credit cards?'

• Have goals. Make sure that whoever is in charge of collections knows how many past-due accounts are in your system and how many bills they are responsible for collecting each month.

Yes, some people are criminal debtors who will never pay a bill. But the majority will. By using the above steps, and making sure you keep past-due accounts to a minimum, you will avoid having to hire a collection agency or an attorney.