It can be a daunting task to request payments from defaulters who are either not ready to settle that debt or in no capacity to pay it.Even if your clients are trustworthy, you should keep in mind that your enterprise could collapse if you feel sorry for them. Therefore, this editorial will expound on some of the debt recovery procedures that you can use to recover your money.
The first thing that you need to do is to call and send a mail to your customers to tell them about their late invoice payments. It could be that your customer used an incorrect bank account in paying the mortgage or they could be dealing with other issues which made them forget about your debt.As such be sure to include your business bank account number, payment method that your business uses and your mobile number.Once you do this, your client will not have excuses for not paying the debt as they will have the necessary payment details they need to settle the debt.
However, if the debt remains unsettled even after sending a friendly reminder and they have missed the payment after the agreed date, or they have not contacted you, you should call the customer again or send them another email. Still, if they miss paying after these two extended periods, you should contact the customer with a final notice. Here, you can try to make direct contact with them by visiting them to inquire about the payments. At times, this debt collection procedure can assist in strengthening your business relationship with your customer.
If the debtor fails to pay the mortgage after reaching out with these debt collection methods, the next step you should take is to send them a letter of demand.Nonetheless, this demand letter should be the last option to take while you are requesting invoice payments as it can ruin your business relationship with your client.
Further to that, you should think about involving a debt recovery attorney if the customer defaults to settle the money he or she owes you even after trying to reach out on several occasions.A debt recovery solicitor will strive hard to recover your debts through the court by filing a lawsuit against your customer. At this point, you will have to wait until the judge passes judgment. If the judge solves the case in your favor, then your customer will be responsible for all the costs you have incurred and will also be required to settle the debt in full amount.
Finally, it is important to know that the debt collection methods differ from one country to another. For that reason, make sure you have a debt attorney who will assist you in demanding invoice payments as he or she can make your work easier. Not only will you get back your money, but you will understand how the debt collection method operates.