Chasing an outstanding debt in the building Trade can be a tricky problem to tackle, particularly as builders and suppliers alike tend to have longstanding relationships with their clients. However, it is important to set a precedent when it comes to late payment and having a clear and consistent method of chasing unpaid invoices will go a long way to achieving that.
One of the first and most effective ways to politely remind a client with an overdue balance is to set up your accounting software to gently nudge them at regular intervals. If the client is reminded periodically, this will send a clear indication to them that you are serious about being paid.
Restriction of Account
Should this not have the desired effect, the next step is to restrict any new purchases on any credit accounts they made have with you until the debt is cleared. For example, for a typical and reputable builders merchants, this will be a serious wake up call to sort the situation out and will stop any ‘cowboy’ builders from running up an even bigger debt.
Point of No Return
Once a certain point has been reached and all diplomatic efforts to resolve the situation have failed, it’s time to make things official and being proceedings to recover the debt.
A professional, Debt Collection Agency specialising in the construction industry will be your best chance of success, as they will have knowledge of the best techniques to use to recover monies owed from this type of debtor.
In the modern day, everything a reputable collections agency does has its basis in professionalism and ethics. There are usually no hidden costs and you get expert collection professionals well versed in dealing with scenarios such as yours.
Construction is like any other type of business – You provide a product or service, you get paid and everybody is happy. When the payment doesn’t come, you need to act instead of ignoring the problem as it’s only your business that is going to suffer if you don’t.
And by far and away the most cost effective and time efficient way to do it is by using a debt collection agency.
Our Debt Collection services are used by all areas of the construction industry and we have vast experience of dealing with all types of scenarios where there are cases of unpaid invoices.
Just a few of the typical sectors within the construction industry that use our leading Debt Collection services are Builders, Builders Merchants, Timber Merchants, Brick Manufacturers, Concrete suppliers, Joinery Firms, Surveyors, Architects, Shop Fitting firms and Roofing companies.
We have cross sector expertise so be sure that Federal Management is the most professional and proficient way to recover your unpaid invoices.
For a friendly chat regarding your situation, speak to our New Business team today for a free no obligation assessment.