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No matter the reason, be it a financial issue, health problems, lack of money or simply indifference, some customers forget or actually choose to forget paying their debts. We know it’s not a pretty situation to be in, but it’s better to be prepared, as it is all too common.
Yes, it would have been a great idea to do a background check before choosing to work with this customer, but what can you do now?
Start friendly
There is no need to generate drama or escalate the situation before you identify the problem. As stated above, this could be a case of forgetfulness or bad management, not necessarily ill will. You definitely don’t need to get into asset search at this point.
The first step in debt recovery solutions is sending a friendly reminder about the payment.
This may be done via phone, e-mail or letter. Sometimes this will solve the problem.
Notification of overdue payment
OK, so you tried the friendly approach and it didn’t work.
No need to be alarmed or take them to court just yet! If the customer didn’t get back to you or he even skipped the next payment, you need to contact them again.
Direct contact
The debt collection process should also include an in person visit to your customer if the need arises. You may think it’s a little intrusive to visit their place of business, but sometimes it’s not their direct fault and this meeting could facilitate a future personal relationship that could benefit both you and the customer.
Don’t go there with an abrasive attitude.
Formal demand
You tried to contact them directly and you failed? Well, keep in mind that what follows lies in the realm of final solutions.
This may very well damage the relationship that you have established with the customer. But, if all else fails, you are well within your rights to send a formal letter of demand. Everything, every method of contacting and communication so far should have been documented, especially if the case goes to court.
Use professionals
If all of the above didn’t work, it’s time to call the professionals.
At this point you can safely consider hiring the services of an investigations team specialised in debt recovery.
These services will take over the burden of returning the money that you are owed, thus freeing you of the hassle that could ensue. Make sure to hire renowned experts with experience in this field. You don’t want to needlessly escalate an already volatile situation.
Take them to court
This is the last resort for a reason. Opening a legal case might end up costing you more than money, it could also cost you a lot of time. Before choosing this route you need to make sure that your customer has the means to pay off the debt: they’re not bankrupt or their company is in liquidation. It may be easier just to let the debt go.
We know it’s extremely frustrating when situations like this arise, but it’s part of the game.
Know the game in order to win it, contact us!
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