- May 4, 2015
- Posted by: Taurus Collections
- Category: Uncategorized
When you own a small business, you don’t have time to deal with bills and recovery of business debts after they turn sour. You’ll just end up losing more precious time and money, even if you do collect your debts in the end. Being prepared for late-paying customers is an important part for the successful recovery of small business debts. Quick action is key to maximizing profits and minimizing any losses in a small business.
Early Recovery of Business Debts
If you’ve built up some little semblance of rapport with your customer base, we know it can be hard to just simply send a collection agency after them and force them into a corner, but you have to think about the future of your company and not be distracted by individual cases, all debts must be paid.
The first action you should take is to send invoices including late fees before their payments are due, so if they do not respond to that letter, for whatever reason, that is their failed responsibility. You can let the customer dictate the rules of payment, if they cannot pay their bill on-time, then they must commit to some type of repayment schedule to show that they are serious about paying. This is how debt collectors can make the recovery of business debts a much more reliable transition for you, so that you can focus on growing your company.
As long as you have made the kind gesture to the customer that their payments are due soon, there is no reason for them to think that you are a company of no compassion. A customer that is serious about paying will always prefer to go through you before having to deal with a third party bill collector, so always use this opportunity to play a good cop/bad cop scenario with them.
Let the professionals handle it
After exhausting your own resources in-house, you just have to concede that there is nothing you can do at this point that will make it worth chasing the debts on your own, so you really have no choice but to hire a debt collector that can take further steps that will enable you to recover as much of that debt as possible, unclogging your cashflow problems in the process. A complete recovery of small business debt is of course ideal, but even if you are only able to get a reduced settlement out of customers that went cold-turkey on you when all attempts at communication failed would be an amazing boost of cashflow and morale.
You could, of course, dedicate an entire afternoon to instigating legal proceedings for small claims court, if it really is just one major culprit causing you debt grief, but if that is just not a realistic scenario for you, recovery of business debts is best left to the professionals. While you take this journey as a small business owner, you will experience more instances where debt collection just becomes something you must factor and outsource out every quarter in order to keep operations running smoothly.
If you wouild like to discuss how a 3rd party can help you with recovery of business debts, please don’t hesitate to call us today on 0333 336 7196 or email email@example.com