However, many businesses avoid or delay dealing with debt collection. It may be because they find chasing debtors unpleasant. Or perhaps it is simply due to being so involved in daily business activities that debt collection is put on the back-burner.
Regardless of the reason, your unwillingness or inability to collect money can easily lead to a cash flow crisis.
The best way to avoid debtor problems is to establish efficient systems and follow set procedures. But despite your best efforts, there are likely to be occasions where you have to chase debtors. Here are some tips to help you.
- Take precautions when you give credit to a customer.
- Get on top of problems early – don’t let the problem escalate beyond your control.
- Address unpaid invoices as early as possible. The longer the debt goes unpaid, the less chance you have of recovering it.
- Try to maintain a good relationship with the debtor. If you can assist them through a temporary problem, they are likely to remain loyal in the future. Persistence is your best weapon.
While persistence is your best weapon, most companies know that a bill that wasn’t paid on the 90th day won’t be paid on the 100th, 110th or 120th. This is when it’s crucial to bring in a debt collection professional. Companies can’t keep sending out statements and simply hoping that the debtor finally sends in a payment.
Please visit Dynamic Legal Recovery’s website or call us at 877-777-7564 for your complimentary evaluation.