Many small business owners deal with the frustrating but inevitable challenge of doing business with customers who won’t pay. As disheartening as it can be, it is sometimes a disappointing reality of doing business.
Fortunately, there are professional firms like Boston Commercial Services that specialise in debt recovery service and can help owners get back the money they are owed. However, there are also several things you can do to try and collect debts before engaging a professional firm.
In this article, we will outline seven bulletproof ways that you can get paid faster and keep your business running smoothly. Read these tips to learn how you can take charge of your outstanding customer debt today.
Clarify Your Payment Terms Upfront
Try to avoid the situation entirely before you’re stuck in the unfortunate predicament of a non-paying customer. Make sure your payment terms and conditions are clearly outlined at the time that payment is required. While this isn’t a foolproof way of ensuring that customers pay, it can encourage them to stick to your timeline.
Send Firm (but professional) Notices
Life gets busy, and people make honest mistakes. Before you threaten legal action or engage a debt collection agency, make your best attempt to reach out to your client via different communication mediums (phone, email and mail). Your customer may be going through an internal staff change or be in the middle of their busy season. Especially if they have been a long-time customer, give them the benefit of the doubt until you need to take more severe action.
Put a Hold On Service
Especially at larger companies, the people using your product or service may not be the same people who pay the invoices. If you have not received a response to your requests for payment, stop providing services. Your customer may reach out to you, and you can kindly let them know about the discrepancy with their accounting department.
Look into Arbitration
If the dispute continues to escalate, you may consider taking your client to arbitration. In this process, each party will present their argument to a neutral third party (known as the arbitrator). The arbitrator will then decide on how to proceed and what each party is responsible for.
Send a Letter of Demand
Letter of demand are official documents that list out all of the previous action you have taken to recover your money, as well as what you plan to do if it is not recovered. Letters of demand are intended to be taken seriously by your client.
Hire a Professional Debt Collection Agency
If you have pursued these steps and you still haven’t recovered your debt, it’s time to engage a collection agency Melbourne. These firms have professional collectors who have extensive experience working with small business owners to secure the money that is owed to them.
Pursue Legal Action, if Necessary
Work with your debt collection agency to determine if you should pursue legal action against your non-paying client. Your firm can advise on whether going to court is worth the time and expense of recovering certain debts.
At Boston Commercial Services, we take our commitment to your business seriously. Because we act on your behalf, we adhere to strict compliance auditing, maintain proper certification and enforce high standards for our staff.