(FORTUNE Small Business) – Tips For Collecting Cash

The Sopranos have a knack for recouping debts. But Tony's ways aren't for all. Our more subtle tips:

1 Preventive Medicine A well-written contract is essential. Make sure your contract includes provisions for interest on delinquent payments and collection expenses, such as an agency's standard 25% to 35% take as well as attorneys' fees. In many cases, says Jim Finucan, author of Past Due!: A Debt Collecting Manual (Limelight, $39.95), debtors will pay up when reminded that they've signed a legally binding deal.

2 Follow a Script Once you get on the phone with customers or suppliers, it's best to have a familiar shtick. In the heat of battle, a script can help keep you calm and focused. Like any performance, rehearsing also helps. Finucan's own patter sticks to a system he calls Open, Facts, Done, Close. He starts with a vague question like, What are your intentions toward this bill?, and finishes by confirming when a check will be delivered.

3 Avoid Sequels Finucan isn't a fan of partial payments. (Hey, who is?) While giving longtime and normally creditworthy clients a break is fine, it's often better to suggest that your debtor take out a loan rather than accept installment payments from him. Accepting payments over time could void a contract, warns Finucan. Besides, he says: "You're not a bank. You shouldn't play the role of one." Amen.

Executive Checklist

If it seems as if securing funding is harder than watching a Paulie Shore movie, keep reading: There are still ways to get the dough you need. One is to develop a stronger relationship with your banker. How? We spoke with two fund-finding experts, Joseph Mancuso and Linda Pinson. Mancuso is founder of the CEO Club (ceoclubs.org), a nonprofit business-support network. Pinson is a former professor of entrepreneurship and last year published Keeping the Books: Basic Recordkeeping and Accounting for the Successful Small Business (Dearborn; $22.95).

--A little legal snooping is suggested prior to committing to a bank. It's important to check out |the institution's loan-to-deposit ratio, which indicates its likelihood to lend. If the ratio is growing, you've found a winner!

--Check banking ratings. Mancuso suggests contacting a company like Veribanc in Woburn, Mass., which monitors the industry, analyzing a bank's strengths and weaknesses.

--Fork over your business plan with your application. It may be just the thing to distinguish you from the faceless and finance-hungry hordes.

--To build your banker's confidence, Mancuso advises you take a loan at a time when you know you can pay it back. With that kind of track record, you'll be more likely to get money the next time--when you really need it.

--Pinson says it's a good idea to know "where you want to go down the road." You may not need a loan or a merchant credit card right now, but it's best to know now if your bank offers SBA-guaranteed funding and credit card services.

--While negotiating a loan, it may be helpful to employ a lawyer who works for the bank's competition. Mancuso says this method should guarantee that you'll have legal counsel that's familiar with your bank's lending status.