There is no denying that getting a debtor to pay can be a long and complex process, especially if they are doing everything they can to avoid handing over the money, but that doesn’t mean that it’s a completely impossible task. When you have a team of debt recovery experts handling things, you have a great chance of receiving money that is owed to you.
Of course, getting paid requires more than just being in the right. It’s possible to cut down on the likelihood of unpaid debts by vetting clients, outlining payment terms and being firm with delays. If you want the best chance of being paid, you need to follow the requirements and best practices detailed below.
Not Vetting Clients
You can learn a lot about a person by vetting them before you form a business relationship, regardless of the type of service you provide. Finding out if a client is trustworthy beforehand is hugely beneficial, as it will highlight any red flags and potential concerns. If someone is flagged as being untrustworthy or if they have a history of avoiding payments elsewhere, you can choose not to work with them. Though this will lose you a customer, it will ensure that you don’t work with any future debtors.
Not Outlining Payment Terms
When you issue an invoice, make your payment terms obvious. Make it clear how much is owed, what the terms of payment are – such as how long they have to pay and whether a deposit is needed – and what your preferred methods of payment are. If you don’t outline your payment terms, you run the risk of there being too much ambiguity. This is something a debtor can take advantage of.
Being Too Polite
One of the biggest mistakes people make when it comes to recovering debts is being too polite. This could be in the form of not pushing for your money for fear of losing a customer or continuing to work for someone for a long time without payment. You might even find yourself agreeing to deductions in the case of a dissatisfied client, even though you provided a high quality and professional service. When someone owes you money, you need to be firm and pushy. After all, it’s your money.
Waiting Too Long
Though it’s not uncommon to give someone a bit of leeway when it comes to payments, you need to ensure that this is a short term arrangement. There is a deadline of six years for recovering debts, and leaving it any longer than this could mean that you never receive your money. This is why you should take action as soon as possible, as this gives you a lot of time to pursue a payment.
At Cobra Financial Solutions, we are here to help you recover debts. To find out more about any of our debt collection services, get in touch with our helpful team or give us a call on 0151 526 4222.