As a business owner, you have many essential obligations to keep your company operating from day to day. From hiring good employees to building a marketing strategy to managing your finances, there’s no shortage of responsibilities.
While all these duties are important in their own right, perhaps the most critical is making sure that your finances are properly sorted. Without enough positive cash flow, you won’t be able to pay employees, order inventory, or even keep the lights on.
Unfortunately, one of the most frustrating things that can happen as a business owner is when you deliver a product or service to a customer, and they won’t pay. This situation is all too common and ends up requiring a great deal of back and forth communication on your part, wasting time and taking your attention away from more strategic business matters.
In this post, we’ll share the steps you can take to recover debt and get back in control of your business.
Give the Benefit of the Doubt (At First)
If you’ve sent an invoice to a customer and they won’t pay, the first steps are to follow up with them. Sometimes, clients make an honest mistake and forget to send payment. If you want to keep the working relationship intact, then it’s a good idea to send gentle reminders via email and phone first.
Stop Providing Services
In the meantime, instruct any employees who work on the account to stop providing services until the invoice is paid. Hopefully, the customer will realise that they’ve stopped receiving services and will take action to send payment. Otherwise, don’t continue spending resources on them if it will just increase the amount of debt that they owe you.
Send Written Notice
If those tactics have gone ignored, then it’s time to take more formal action. Draft up physical 1-2 reminder letters and send them via post. If your customers still refuse to pay, then you will need to take the next steps, including sending a letter of demand or engaging a debt collection agency.
Send a Letter of Demand
After you have exhausted all of those options, you can issue a letter of demand. In Australia, a letter of demand outlines all of the previous action you have taken and states the consequences (such as legal action) if payment is not received. Letters of demand are considered quite serious, so you may want to work with a professional debt collection agency to draft and send one.
Hire a Professional Debt Collection Agency
You can elect to hire debt collectors at any point within the process. These professionals are trained to recover unpaid debt from your customers, making debt recovery easy and allowing you to focus on your business.
Debt recovery services like Boston Commerical Services will place escalating phone calls and letters of demand on your behalf. Throughout the process, they will maintain a professional demeanor so as not to damage your business relationships.
If your clients keep ignoring these calls and letters, a reputable debt collection agency will pursue other avenues, including skip tracing and legal action, if necessary. Boston Commercial Services offers its clients access to legal help at a discounted rate and charges on an activity basis, rather than a time basis.
All debt recovery agents at Boston Commercial Services receive ongoing training to ensure that they are complying with all debt collection laws and regulations. The firm also regularly monitors calls and is fully licenced, so a high level of professionalism is guaranteed when working together.
Ready to regain control of your business? Call the experts at Boston Commercial Services today!
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