Whether it is a company or a personal debt these are the steps to follow to have a successful recovery.
- Decide on when to take action;
Must you bring down the hammer on a debtor who owes just because he or she has not paid his debt for a while? Or on a loyal customer just because he/she is a little late with a payment? Your relationship with client turns adversarial the moment you descend on a customer for payment. You can even lose a good customer. Nevertheless, you still have to recover, but take a lot of things into consideration when taking action. Companies usually take action after 30 days, 10 days or 60 days. That solely depends on the agreement you had with the customer.
- Send a reminder to the debtor;
Gently remind the debtor either by mail or phone call. Let them know that their debt is overdue. Some may try to avoid embarrassment by saying they did not know or had forgotten. A certain percentage of debtors will pay as soon as it comes to their notice that you are ready to take your money.
- Serve the debtor with a demand letter if the gentle reminder fails;
At this stage, do not think the debtor has forgotten to make a payment and remember not to be hostile. Let them know you are rightfully owed the money and is either they make immediate payment or come out with a payment plan. This approach works for all with the exception of the recalcitrant ones.
- Take a legal action
Take a legal action against recalcitrant debtors. Get on top of your debtors’ priorities by convincing them to pay before they pay someone else. Contact them constantly through mails, phone calls or pay them continuous visits. Collecting money is not fun,but you can be assertive without being a bully. It is your money so there is no reason to feel reluctant about using bold tactics to collect them. Recovering debt owed you has a significant impact on your balance sheet.
Call us if you can’t do it all by yourself 0577669030, 0577669039, and 0577674763 or via our social media handlers.
If you find it hard to pay your debts or recover your debt, you may need to get help from a Debt Counselling Company like Capital Factors and Debt Management Services.