Please Help Me - I have been killed by my bad debt

Hi Sabra. I gather you have a veterinary service? The veterinary I take my "Bandit" to will not accept anything other than credit card payments. They used to self-finance, but they found many of the same problems you are experiencing. One incentive they use is to encourage their clients to get pet insurance. They still pay the vet up front, but the policy they buy reimburses them for what they pay to the vet.

In your line of work I can see how it would be hard to turn down a patient, but at the same time you are in business, so you have to be pragmatic and take the emotion out of the situation.

Are your clients people who are already struggling with their payments in other areas? You could suggest they get into debt counseling. Ultimately, though you will either want to hire an attorney to collect or an agency. Talk to the agency about their practices and be sure to find one that's effective.

Another alternative would be to try to work out a payment plan they can afford. Some money is better than none. But, let them know that you are serious about getting your money. You sound like the type of person who is so sweet and loving that maybe your clients think it's o.k. to put you off because you're so understanding.

You are right - turning down animals and kind people is the worst. Our clients typically do not have much more than their pets, so the business suffers due to our open hearts. I just really didn't want to resort to a debt collector - since we have exhausted our abilities. I suppose I just need to grow a thicker layer of skin and interview the collection agencies. Thank you for your advice - I will try getting the pet health insurance going, and simply do away with promissory notes. Thanks again for your advice. - Sabra

Talk to the agency about their practices and be sure to find one that's effective.
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Hi Sabra,
Welcome! I read your post with interest and can totally see where you are coming from. You sound like a person who loves animals, but does have a business to run with all of the related expenses. Bottom line is, you have rendered a service and have a right to be paid.
I agree with Debt Fairy. Do the pet insurance,and set up fair payment arrangements. If your patients still don't pay, then go for the collection agency. Good luck!

I was thinking about this after I logged off last night. Sabra, you need to talk to your clients and help them to understand that you are there to provide services to them and their pets. If they don't pay you and you have to close your business, in the long run they are the ones to suffer because many veterinary services won't even see your pet until they can be assured that the owner can pay before the leave the clinic. Let them know that you want to be fair, but they need to be fair too.

My vet only allows those who have been established clients make payments without insurance or full payment at the time of service...And he sends statements out every month. And if you don't pay him like promised, he willnot hesitate to send you to collections. He has to pay his staff, and keep the lights on--In addition to himself.

Your customers need to pay their debt, plain and simple. It's not fair to you.

But DO research the companies you plan to have represent you. Feel free to run the names by us here, and we can see if anyone here has deal with them and if they're ethical or not. Make sure the company is licensed as well.

You could also send out reminder notices to the people that owe to you, and let them know that if they don't make arrangements shortly, you will have to turn them over to collections. That might light some fires under their butts. :)