Sometimes collecting debts can be an overwhelming task especially when you have to deal with customers who are either unwilling to pay your debt or are in no position to repay it. Even though you have the best customers in your business, it is important to keep in mind that your business could close at any moment if you pity them. For that reason, this article will highlight some of the debt recovery processes that you should use to remind your clients about their outstanding debts.
First and foremost, you should contact your clients through phone or email reminding them about their debts. It could be that your customer used an incorrect bank account in paying the mortgage or they could be dealing with other issues which made them forget about your debt.As such be sure to include your business bank account number, payment method that your business uses and your mobile number.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.
However, if the debt remains unsettled even after sending a friendly reminder and they have missed the payment after the agreed date, or they have not contacted you, you should call the customer again or send them another email. Nonetheless, if the above debt processes fail, you ought to give them a final extension period to resettle the debt.Here, you can try to make direct contact with them by visiting them to inquire about the payments. Sometimes, this debt recovery process can help to create a strong business bond with your customer in future.
If all the above attempts fail, consider sending them a debt recovery letter. Conversely, this formal letter of request should act as a last resort in demanding payments since it can damage your relationship with your customer.
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 debt recovery solicitor will strive hard to recover your debts through the court by filing a lawsuit against your customer. At this point, you will have to wait until the judge passes judgment. If you win the case, your debtor will have to pay you back the legal proceedings fees you incurred as well as settling the invoice payments you owe him.
Finally, it is important to know that the debt collection methods differ from one country to another. As such it is imperative to use a debt recovery solicitor to make the process less stressful. Not only will you get back your money, but you will understand how the debt collection method operates.