3 Debt Recovery Tips to Try Before You Call in Debt Collection Lawyers
Do you have strategies for tending to outstanding accounts in your business? Do you know how to talk with customers who owe you money? This article will detail three easy interventions to try before you call in debt collection lawyers.
1. State Your Terms
Your present trajectory shows you how things are bound to continue unless you change your behaviour. So, if your customers have outstanding balances, you need to find how you can amend your actions to prevent this from happening in the future. One of the ways you can do this is to state your terms of payment at the beginning of a business relationship with a customer. Ensure that they sign the documentation and understand your terms. If you do this at the outset, then it’s much harder for them to come to you later claiming not to know what your terms of payment are. While it can feel awkward being so business like at the beginning of a customer relationship, it’s much less awkward than having to chase them for money later on because you failed to state the terms in the first place.
2. Call the Client
You may have already sent written communication regarding an outstanding debt, but sometimes emails get lost in inboxes, things get put off, or postal mail doesn’t make it to the right person. The most direct way of contacting your client is via phone. Be on the front foot and quickly problem-solve for your client if they offer objections to paying, such as they haven’t received the invoice. Make paying the bill easy for them in order to increase the likelihood of them honouring the amount owed. You should call them regularly, at least once a week, as the repetition of hearing from you will keep you at the top of their mind. If you get nothing but excuses over time, then you may need to call in debt collection lawyers to back you up.
3. Be Cool and Calm
It’s easy to let frustrations get the better of you when you’re chasing money from clients. But it’s important to stay calm and cool, and be prepared to problem-solve on the fly so that you have a greater chance of getting paid. Remember that this process is a negotiation with the customer. You don’t know their circumstances and there may be a very good reason why they can’t pay you right away. If they say they’re experiencing hardship, offer a payment plan so that paying the money back is easier for them and will end up actually happening.
If That Doesn’t Work…
If these three tips don’t work in getting you the money you’re owed, then you may have to hire debt collection lawyers who can bring in some more heavy-handed techniques to motivate your customers to pay. Debt collection lawyers are experts in the field and know what to do to get customers to pay.