With 2026 only a month or so away, it’s not too early to make some resolutions. This year, resolve to do more business… and collect more balances than ever before. As always, we’re here to help with that!

For any successful business, managing accounts receivable is a critical function. Inevitably, you will encounter clients with past-due balances. While these situations can be challenging, a systematic and professional approach can significantly increase your chances of successful recovery. Before escalating an account, here are four essential strategies for effective in-house debt collection.

Establish a Foundation of Fact

Before you even pick up the phone, your first step is preparation. A successful collection call is built on data, not emotion. Gather and review all relevant documentation, including:

• The signed contract or service agreement.
• A complete record of all invoices and their dates.
• A log of previous payments and any past communication about the account.

Having these facts on hand allows you to operate from a position of authority. It enables you to calmly and accurately counter any disputes with documented evidence and demonstrates that you are taking the matter seriously.

Maintain Control of the Dialogue

It is a common tactic for debtors to deflect or change the subject to avoid discussing the past-due balance. Your job is to remain in control of the conversation.
This doesn’t require being rude or dismissive of valid concerns, but it does demand professional firmness.

A simple, assertive phrase can keep the conversation on track: “I understand that’s a concern we can address separately, but the purpose of this specific call is to resolve your outstanding balance of $X.” Stay calm, focused, and remember the objective: securing payment.

Negotiate from a Position of Strength

Flexibility can be a powerful tool. A client who cannot pay the full sum today may be willing and able to commit to a structured payment plan. Offering a reasonable path forward preserves the client relationship and is often the quickest way to recover the funds.

However, this flexibility should not be mistaken for weakness. If you agree to a payment plan, get the new terms in writing—an email confirmation is sufficient. This document should clearly state the payment amounts, due dates, and the consequences of defaulting on the new agreement. Bend, but do not break your process.

Secure a Concrete Commitment

No collection call should end without a defined next step. The goal is to secure a specific, actionable commitment from the client. Vague promises like “I’ll take care of it soon” are not enough.

A concrete commitment sounds like:

• “I will make a payment of $X online by 5 PM this Friday.”
• “I will call you back with credit card information tomorrow before noon.”

This creates accountability and provides a clear benchmark for follow-up. If the client fails to meet their own stated commitment, it strengthens your position for any future action.

When It’s Time for Professional Intervention

If your own good-faith efforts have been exhausted and the debt remains unpaid, it’s time to escalate the matter. Your time is your most valuable asset, and spending it on chasing unresponsive accounts yields diminishing returns.

At Gilliam & Mikula, we are attorneys specializing in debt recovery for businesses across Virginia. We bring the full backing of the law to the collection process, allowing you to focus on running your business while we navigate the legal framework to recover what you are owed.

When you’re ready to move forward, contact our team. Begin the process by filling out the form below.

Gilliam & Mikula is centrally located in Richmond, Virginia, and serves clients throughout the Commonwealth of Virginia. Our attorneys have over forty years of combined experience in various practice areas, representing individuals and businesses. We are licensed to practice in all General District Courts and Circuit Courts of the Commonwealth of Virginia including Central, Tidewater, Northern Virginia areas, and throughout the states of both Maryland and North Carolina.

The attorneys at Gilliam & Mikula are here to smoothly guide you through the “legal maze” and ensure that you achieve the most favorable outcome.

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.  Information on this website may not constitute the most up-to-date legal or other information.