Sometimes collecting debts can be an overwhelming task especially when you have to deal with customers who are either unwilling to pay your debt or are in no position to repay it. However loyal your customers are, you should always remember that you are running a business, so if you sympathize with them, you may end up closing your business. Therefore, this editorial will expound on some of the debt recovery procedures that you can use to recover your money.
The first thing that you need to do is to call and send a mail to your customers to tell them about their late invoice payments. It could be that your customer used an incorrect bank account in paying the mortgage or they could be dealing with other issues which made them forget about your debt.If your client is in such situation, make sure you include your bank and contact details as well as your preferred mode of payment. By doing this, your client will quickly act on paying the invoice.
However, if the debt remains unsettled even after sending a friendly reminder and they have missed the payment after the agreed date, or they have not contacted you, you should call the customer again or send them another email. If they default paying after these two debts recovery procedures, consider giving them another chance to see if they will repay the debt. In this case, try to make direct contact with them by going to see them and reminding them how much they owe you. This debt recovery process sometimes helps in creating a personal relationship with the customers that could come in handy for future payments.
If all the above attempts fail, consider sending them a debt recovery letter. Nevertheless, this debt recovery letter should be the recourse you take against your debtors can destroy your business rapport with them.
More so, if sending the formal letter of demand does not get the debtor to pay the debt, consider hiring a debt collection lawyer. A debt recovery solicitor will strive hard to recover your debts through the court by filing a lawsuit against your customer. At this point, you will have to wait until the judge passes judgment. If you win the case, your debtor will have to pay you back the legal proceedings fees you incurred as well as settling the invoice payments you owe him.
Lastly, keep in mind that in most states, debt recovery procedures are not the same.Therefore, it is of paramount importance to involve a debt lawyer in debt recovery process since they can retrieve back your money quickly.This will not only ensure that you have recovered your money, but that will help you know how the debt recovery process works.