3 Helpful Tips for Business Debt Collection: How to (Finally!) Get the Money That You’re Owed
There are few things worse than waiting on a customer to pay you back what they owe. Having to call them and mail them numerous times just for them to act like they don’t know you even exist can be a pain in the backside.
Look, here’s the thing. No one (and we really do mean not one customer) enjoys paying back business debt, and you don’t enjoy hassling them for it. Luckily, there are ways that you can get around this problem – and get your money back.
Quick Tips on Collecting Your Business Debt
When debts need collecting, you need to get your money back in the quickest way possible. Here are just a few ways that you can make that happen.
Know Your Rights
The first thing that you need to do (besides keep calm and not put a beat-down on your customers) is to understand your rights when it comes to your money.
Many lenders may not understand the legal powers that they have, and because of that, they tend to get frustrated and not do much else. Once you understand what you can do, handling your clients becomes a lot easier.
No matter how much you may want to get in your client’s face, this is not the mafia. Threats and harassment are not only unprofessional, but they can be used against you in court – and the last thing you need is to be labeled the bad guy.
Try your best to keep things classy. Make only one call (or leave one voicemail if they don’t pick up) and let them know you follow these financial matters to a fault. It’s a good way to show you’ve been the responsible party the whole time.
Work with Their Budget
Not every customer wants to run away from responsibility; some just can’t afford to pay what you expect. When that’s the case, you’ll have to learn how to get a little creative and work with their budget.
Remember, some money is better than nothing at all. Find out from your clients how their salary is, and how much they would be willing to pay each month. With enough patience, you can find a middle ground.
Use a Collection Agency
If your clients continue to be stubborn, a collection agency may be the way to go.
Collection agencies are a good choice when you have to wrest the money from a customer, but be warned: these agencies usually take 50 percent of what clients owe you. In any case, getting half is still better than getting zero.
We’re on Your Side
When push comes to shove, you need someone who can help you take care of your business debt problems and get you the money that you deserve. We can help you do just that.
At Manfred Law, we make sure to help our customers with their problems while having the law on our side. We can help with problems arising from business transactions, commercial litigation, real estate, and so much more.
Ready to work with us? Give us a call and let us know how we can help you. We look forward to working with you soon!