Useful Debt Collection Strategies for Small Business

At some point, every business will encounter a situation where a customer fails to pay on time or refuses to pay altogether. Though these situations are notably frustrating, you must respond in an appropriate manner. If you are struggling to collect a payment, follow the below strategies that let you recover debts successfully.

Useful Debt Collection Strategies for Small Business

Give A Friendly Payment Reminder:

Your outstanding payment could be due to the client trying to avoid payment, but there are chances that they could have overlooked by the customer. Chasing up customers with overdue invoices seems to be an arduous process, but don’t lose your good customers by harassing them. If the payment is overdue, send a friendly reminder to the customer either via email or letter. Also, keep a record of the emails and letters that you have sent as they could be helpful in the future.

Give The Follow-up Reminder:

If the customer did not respond to your email or letter, it makes sense to call the debtor and ask for payment. Some people have to be tackled by a voice for you to recover the payment. If the phone call reminder does not work out, it’s time to send a final notice to the debtor.

Send A Final Notice:

If previous steps have been unsuccessful receiving the delinquent payment, you can send a final notice to the debtor, explaining your previous attempts to collect the payment and reminding them of the terms and conditions of your agreement. Also, inform them that you require immediate payment to avoid further recovery action from a debt collection agency.

Send A Formal Letter Of Demand:

If all your attempts to collect the payment have failed, consider sending a formal letter of demand to the customer. This letter of demand is an official warning to inform the debtor that if the payment is not made, the debt will be handed over to your collection agency. Feel free to use our debt collection letter in conjunction with our debt collection tips for the best results in debt recovery for small business.

Hire A Collection Agency:

If you have still not been paid, consider hiring a debt collection agency to collect the outstanding money from the customer. Not only will this save you time, but will also keep you away from legal issues.

Let’s Help You!

When it comes to debt collection, you need the help of the experts. JMA Credit Control understands what it takes to collect outstanding debts successfully. We employ expert strategy and execute it in a professional manner to recover your overdue debts. So, if you need help with recovering overdue debt, call 1300 664 223 and tell us about your situation.

richardt@jmcredit.com.au'

Written by Richard Thompson

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