In High street retail and most ‘point of sale’ businesses, purchases are settled upfront. In this instance, if a payment does not go through then the customer just doesn’t get the product. It is that easy.
However, most of those not in this sphere of industry operate on a ‘goods and services first – invoice after’ basis. Typically speaking, depending of course on what businesses we’re talking about, customers are given 30, 60 or 90 days to settle their invoices.
Never more so than today, a rising number of businesses are finding that they aren’t able to pay due to tightened cash flow. Add those who simply refuse to pay and you can see that it’s a problem that needs to be addressed for the good of your business.
There will be a certain amount of late payers that have just forgotten due to being busy or badly organised. A quick reminder to this type of customer will usually resolve the issue.
What then, if despite a more than reasonable amount of time having passed, you’re just not getting anywhere?
If a customer has promised on numerous occasions to pay, but failed to follow through on that promise then you should consider professional assistance. Often, Business owners spend more time chasing the don’t pays as opposed to the do pays which is a false economy.
If you business intuition and gut instinct tell you that the matter is not going to be sorted or you are perhaps being lied to, then a professional debt collection agency is the right option for you.
If you send a reminder advising that you will take ‘further action’ if the matter is not resolved, you may find that this is enough to trigger a response. If not, then you can talk to a reputable debt collection firm who will be more than happy to assist. A Professional reputable firm represents a far more time and cost efficient method of recovering your owed monies.
Sometimes, people may feel a little sceptical about this option but that may be before you have really understand what a modern professional collection agency like Federal Management does. As a FCA regulated company, FM is working on your behalf in a very polite, but firm manner, a Professional Company will never act unlawfully or intimidate a customer. This could risk tarnishing your reputation as a company so therefore it is wise to think smart when choosing a Debt Collection Agency to work with.
It is always in the interests of everyone concerned that an agreement is reached amicably.
Never write off bad debts
Faced with debtors who just won’t pay? Never give up and just write it off. A debt collection agency could just be the solution to the problem. Why not have a chat with one of our freindly new business team and talk through your options.
It has to be a better solution than just not being paid.