When customers are past due, one of the first things that goes through their minds is, "I hope my suppliers don't call!"

While this is true of some of my customers, I've been working hard to get most of them, when they know they'll be past due, to think to themselves, "I'd better call Larry and let him know what's going on." Fortunately, more and more of them are doing this.

I've been able to encourage customers to take the initiative to call me before they are past due, rather than waiting for me to call them after they are past due, in a number of ways:

• I make a habit of visiting customers once or twice a year. By getting to know the owners on a personal basis and having lunch with them, we develop a friendship that encourages them to call me as needed. In larger companies, I get to know the accounts payable clerk, A/P supervisor, CFO, and the president.

• I always leave my business card when I visit customers and again encourage them to call me if they are experiencing problems. The card has my toll-free number, which comes directly to my office, which further emphasizes to them that I do want to hear from them.

• I explain that their calling me helps them and me. When I know that something might be late, we can work out some arrangements, and the information helps me with my cash-flow projections.

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• I also emphasize to them that calling me can save them a lot of embarrassment. For example, if they're late and if I have to hold shipments, it can be very embarrassing for a driver to pull up to our loading dock and be told he can't load a shipment for that customer. Word in this industry travels fast, and this customer's competitors will quickly hear about the situation from the truck drivers.

• To further encourage customers to call me in advance, I always express my appreciation for their calls when they do call. I also try to work with them to reach a mutually agreeable arrangement. Example: "Larry, I owe you $150,000, but I don't have it right now. I expect to have it in a week. I'll call you Friday and let you know when I can put a check in the mail to you." Again, I express my appreciation for their call, and then follow up as needed.