6 reasons why you MUST ask for a part payment.

Everywhere I go, everyone I talk to, every business that I help I recite my mantra: “What is the absolute most you can pay today?”. These 9 words are the reason we collect millions of dollars every year and teach others to do the same. Most people have the same limited mindset- full amount or zero. Everything or nothing. Almost nobody thinks about that enormous middle section- part payments. Something, not everything, instead of nothing. Here are the 5 reasons why you have to ask for a part payment:

1. The most obvious one first- it gets you some money. Let’s say you’re owed $1000 and you ask the magical 9 words above and they say $200. You’re suddenly 20% better off. You’ve reduced your overall risk on that debt by a fifth. Anything, I repeat, anything is always better than nothing.

2. It resets the Statute of Limitations date by another 6 years. From when an invoice becomes due you only have 6 years to pursue it before it becomes Statute Barred. Once Stat Barred the debt is gone. It is uncollectable and they don’t have to pay. Any payment, of any amount, within this 6 year period extends it for another 6 years. Not bad huh?

3. The customer now has something to lose. They’ve made a part payment meaning they are now invested in repaying the debt. Financially committed to paying you. If they walk away without paying the balance, that part payment they made was for nothing. People hate losing money so you now have the threat of that up your sleeve for later on down the track.

4. It can negate their claim of a dispute. A payment can be considered an admission of debt- that is, an acceptance that they owe you the money. This is gold.

5. People hate unfinished business. They want closure. That’s why repaying a debt often becomes addictive- the more progress they make the better they feel. So long as you give them regular updates and they keep seeing the overall amount owing go down they will keep paying. This first payment you’re asking for with the magic 9 words is the first step.

6. A part payment gives you confidence that you will get all your money one day. Don’t ever underestimate this- you’re now dealing with a “Payer” instead of a “Non-payer”. They’ve proven they want to do the right thing and this should make you feel good.

Cheers everyone