- February 4, 2019
- Posted by: Taurus Collections
- Category: Blog
If you are in a situation where debts owed by a business is affecting your cashflow, you should take all precautions to protect your position as a creditor. There are numerous steps you can take before spending a fortune on solicitors to resolve the situation by court action. We have put together a useful checklist to help you out.
When debts owed by a business is a problem for your company, try and follow these simple steps:
- Credit check your debtor – although this may be too late at this stage, it is still worth getting a history of the debtor. For instance if they have been trading for 20+ years the chances are this is a blip. They should eventually pay up if they have a long history of trading.
- Correspond by ALL means – when debts are owed by a business there should be a procedure in place. You should use all means of communicating with your debtor. Email, phone, letter – even a visit to the company premises. Then at least you can see what is physically there and if the business is trading as normal. Then you have a good chance of collecting your debt.
- Speak to a Debt Collector – when all means of internal collections have been exhausted, you should seek out a debt collection agency. They generally collect on a contingency basis, whereby they only charge fees on the collected balance. Whatsmore, they always look to recover costs and interest, so you shouldn’t really lose out.
Many of our clients that have debts owed by a business can say they have a procedure in place for collecting late payments. In order to keep your cashflow in good order, your company should too.
Debts Owed By a Business
Debtors will often delay payments as long as they think they can get away with it. However, we find once you escalate the matter those that can pay do pay, and those that can’t will want to arrange a repayment plan. So really you shouldn’t delay things when debts owed by a business.
If you are struggling to collect debts from other businesses, please don’t hesitate to give us a call on 01332 565 350. Alternatively, email email@example.com to see how we can help you improve your debt collection rates.