4 Steps to Follow for Timely Recovery of Debts

Posted by commercial on April 7th, 2017

The success of a company can get jeopardized if the debtors refuse to pay on time. The bottom line of any kind of business is quite simple – getting timely payments for the products or services provided so that there is no obstacle in the cycle. Debts are a huge hindrance between the full potential and the achieved target of a company. The cash flow of your firm should be smooth, irrespective of the type or scale of your business. But since there are a few customers who go on delaying the payments, you must take charge and make sure that the payments are made on time.

Having been associated with a popular debt collection agency for over a decade now, I know this industry and thus, I have jotted down a few steps for the business owners to follow.

• Regular follow-ups: Start following up with your debtors from an early stage that is before the due date arrives. Waiting too long for the debtors to pay is not a very wise option. And hence, you should constantly send reminders to them before the due date arrives. You can either call them or send e-mails to them. If they are unavailable over the phone, leave a message on their answering machine.

• Find out the real reason: There can be various reasons for a debtor not paying on time. As an owner, you can either find it out yourself or assign this task to a third party agency. Remember that the research work is very important. Here are some of the most common reasons why the debtors must be doing so.

1. Bankruptcy: It might be possible that your debtor is making the delay because he or she has gone bankrupted. If this is the case, then there is no point in following up with him or her until he or she recovers or the court gives some kind of judgment in the case. But make sure that you get your dues once his or her assets are liquefied into cash.

2. Trace removal: A few customers might just escape and remove every trace once they get the product(s) or service(s). I would advise that you take the help of debt collection agenciesin these kinds of difficult cases. Also, remember that he or she might leave the country as well, and hence always contact an agency that specializes in dealing with international accounts as well.

3. Negligence: There are a few customers who are just negligent about the payments and thus, delay. While the previous case might deserve a little consideration from your side, this does not.

• Don’t let emotions act as a barrier: In these kinds of cases, customers generally play the trick of emotions so that they can gain your sympathy. But don’t let their emotions act as a barrier in the path of your company’s success. And instead, take professional help to get your dues back.

• Hire a reputed agency: I always suggest that hiring agencies for business debt collection is the best way of getting back your money. Only a skilled and experienced agent can help you out of these situations. They follow methodologies and techniques to squeeze out both the information and the money. The best part is that you do not have to waste your precious time for following up with the clients. They will take care of this entire department. Customers generally tend to pay on time when contacted through an agent, as they somewhat feel threatened. So, contact a reputed agency before your accounts age too much.

So, these are the ways of making sure that you get your receivables on time. Don’t delay and follow these steps in order to remove the barrier of “debts” from your business’ road to success.

Author Bio:

Miranda Wills, a popular business debt collectionagent writes about the steps to follow in order to get the payments from debtors. To know about various debt collection agenciesand benefits of a debt collection agency, read her articles.