If you own a business, then you are probably aware of how hard debt collection can be sometimes. It is after all one of the major failing parts of most businesses in the country. However, with a bit of practice, you may just be able to overcome this problem.
When it comes to business debt collection, there is a general rule that you must observe. You should always act fast and stay determined. It does not matter what kind of client you are dealing with. Make sure that you cat fast to ensure you maintain your right to money owed to you and stay determined so you get paid in full.
However, this does not mean that you go overboard. You ought to avoid harassing people who owe you money. This policy is good for you in both legal terms and in customer service terms. If your actions are considered as harassing, you can wind up losing customers and at the same time face legal charges. When contacting your debtors, do not leave more than one message each day and never under any circumstances threaten a debtor.
When you call your debtors, you have to keep the calls short. You can do so by keeping your message brief and formal. The aim here is to ensure that the person on the other side o9f the line does not take the call personally. Remain calm while you converse but always be clear that the debt should be paid.
If your phone calls are not effective you can write demand letters. Send these letters and save a copy of each every time you send one. These may prove to be useful if you have to get the services of a collection agency. Collections agencies are professionals when it comes to getting your money back. They can even write demand letters at a cost.
If you think that the debtor is not willing to settle the debt he owes your business, you may want to consider offering the debtor to settle for an amount that is less the owed amount. This is a strategy that is used mostly on debtors who may not have any hope of paying the full amount. For some cases, this may work. However, if this does not work, you may have to go to small claims court or file a lawsuit against the debtor.
