What to Remember When Collecting Debts

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Trying to collect debts and following up your clients and customers can be stressful. Besides, it is not easy to constantly bug your clients without them getting annoyed, but it definitely is a must to follow up with them since debts can affect your business, especially its sales.

Below, we will talk about the things that you should remember when trying to collect debts from your customers. Whether you are trying to collect the debts through your own team or you are planning on hiring a bailiff company, you definitely should apply these tips.

Tell Them in Advance

Before even approving a customer’s debt, you should make sure that you would be properly discussing the terms and conditions with them. If you usually charge a late payment fee or even penalties, then let your clients know in advance. This will prevent them from paying late in the future, as the interest, late payment fee, and the penalty can easily add up and make the total fee increase dramatically.

Try to be Persistent

The more you remind your clients of their debts, the higher the chances of them paying for it right away. Try to be persistent and remind them of what they owe every single day. If they do not respond to your calls, then send them an e-mail. If you cannot reach them through that as well, then you can try sending a snail mail to their home instead.

If you slack off when it comes to their debts, then they would think that you have forgotten about it and that they are getting away with it.

Get a Bailiff Company to Do it for You

If you cannot reach the client through their phones, e-mail, or even through snail mail, then you should go ahead and hire a bailiff company to do the collection for you instead. Your client might be promising a payment without actually providing it, which can be damaging to your business. Hiring a professional debt collector will get the job done, as they would not stop until they get the payment from the client. Besides, you would not lose anything, as most agencies usually have a “no collect, no fee” policy, so really, what have you got to lose?

Know Their History

man in a suit looking at document with magnifying glass

Lastly, you should know your client’s history. Is this just a one-time thing or do they have a pattern when it comes to paying their debts? If they have different excuses every time, then have a plan ready so they would not be able to get away with it. Suggest a few solutions regarding their problems or excuses so they would not have any other choice but to pay for their debts.

Ask them when you can expect the payment and that you will be waiting for it as soon as possible. Tell them that there are consequences if they ever fail to pay on the given date and that you’d have no choice but to forward the case to the authorities.

You should always be firm when it comes to collecting debts. If the customer is not afraid of the consequences, then there would be no reason for them to pay for their debts. You can give them a grace period, but be sure to follow up once that period has passed.

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