It can be a daunting task to request payments from defaulters who are either not ready to settle that debt or in no capacity to pay 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.
First and foremost, you should contact your clients through phone or email reminding them about their debts. At times, it could be that they did not default paying the liability, but other circumstances such as paying the invoices to another person by using the wrong bank account or they could have forgotten about the debt led you into thinking that they defaulted. If your client is in such situation, make sure you include your bank and contact details as well as your preferred mode of payment. Once you do this, your client will not have excuses for not paying the debt as they will have the necessary payment details they need to settle the debt.
On the other hand, if this debt recovery procedure fails and the debtor has not called you or paid the mortgage, consider contacting them again either by phone, email or mail. If they default paying after these two debts recovery procedures, consider giving them another chance to see if they will repay the debt. At this juncture, visit your debtor and warn them about the invoice.At times, this debt collection procedure can assist in strengthening your business relationship with your customer.
If the debtor fails to pay the mortgage after reaching out with these debt collection methods, the next step you should take is to send them a letter of demand.Nonetheless, this demand letter should be the last option to take while you are requesting invoice payments as it can ruin your business relationship with your client.
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 liability collection attorney will try to retrieve your money by filing a claim against the debtor in court. At this point, you will have to wait until the judge passes judgment. In the case where the case will be resolved in your favor, the defaulter will be accountable for all the costs you incurred in the debt collection process and will also have to pay the debt.
Finally, it is important to know that the debt collection methods differ from one country to another. For that reason, make sure you have a debt attorney who will assist you in demanding invoice payments as he or she can make your work easier. This will not only ensure that you have recovered your money, but that will help you know how the debt recovery process works.