When running a business, it’s normal to encounter debtors unwilling to pay. However, while such encounters are an inevitability, that’s not to say that they can’t be very frustrating. In fact, debtors are perhaps the most stressful part of business ownership.
If you are in charge of a business and have had the misfortune of coming across unwilling debtors, then this post has you covered. There are some very effective (and specific) strategies you can use to reclaim the money that you are owed. This post will tell you what they are:
Debt Collection Agencies
Without a doubt, the easiest way to reclaim monies owed is to work with a debt collection agency. According to the team at Oddcoll.com, a debt collection agency will understand how frustrating it can be when you’re owed money and will do everything they can to get you your money back. If you are planning on working with one of these companies then you need to shop around and do your research. There are many of these agencies available to hire. You need to find the one that has the best reviews and the most ethical money collection practices.
Credit Bureau Reports
One very effective way of pressuring debtors into paying is to report their situation to the credit bureau, or at least tell them that you are going to. Most people care a great deal about their credit reports. Negative and adverse events reported to the credit bureau can cause a person’s score to drop. When a person’s score drops it usually means that they will then be unable to get any kind of credit for quite a while. Reporting to the credit bureau should be your last resort, because once you have, and unless the person agrees to enter into a repayment plan, it means your money’s lost.
Sending Frequent Emails
In the past, creditors used to send their debtors letters. However, times have changed. It’s a lot better to send people emails now. Make sure you have a variety of different email addresses to use so that you don’t go straight to people’s junk boxes. It’s also a good idea to send people text messages. Sending text messages can be an effective way of annoying people into paying. Make sure you make it clear in your messages that you will be reporting them to the credit bureau if they do not respond.
Offering Repayment Plans
If you want to get money back from people, sometimes the easiest way is not to demand money in full, but instead, to offer repayment plans. Offering a repayment plan will make it easier for people to pay you what they owe you. Make sure you are open to negotiations when it comes to repayment plans. Do not force people to take rigid plans. It’s better to get your money over a prolonged period of time than it is to not get it at all.
Business debts can be hard to manage. Trying to collect money from people can be very stressful, especially when they aren’t playing ball. Use the guidance given here in this post to collect your debts more effectively.