It’s a tough discipline, especially in a recession, but bill collection can make or break a business – and in some cases, it can bring others down with it. After defaulting on $275 million in loans, Idaho’s Tamarack Resort filed for bankruptcy protection in February and shut its doors March 4, leaving behind $22 million in unpaid bills from suppliers and contractors, many of whom had to lay off employees. And a French auto-parts maker recently sued Auburn Hills, Mich.-based Chrysler, claiming the car manufacturer owes $110 million for engineering and research costs.

To successfully collect payments on time, companies need a plan in place that includes more than just the threat of a bill collector calling six times per day. Here are three key steps to get clients to pay up in a down economy… read more