Debt Collection For The Agricultural Sector
Debt Collection For The Agricultural Sector
Like any other industry, the agriculture sector is prone to issues with payments.
The agriculture industry is made up of many different types of businesses that make agreements every day. Livestock, seeds, fertilizer and veterinary services can all factor into the day to day running of a successful farm.
Elements outside of farmers control can include variation in the climate and weather patterns. As well as this, recent changes to international trade such as Brexit may result in invoices and fees going unpaid.
Each of these factors presents its own challenges, and recovering money under these circumstances can be problematic.
If debts are not recovered, it could put a hard-working business at risk of financial issues or even closure.
As such, it is important to know what to do if a farmer owes you or your business money.
In this article, our debt recovery experts outline the importance of debt collection for the agricultural sector.
As well as this, they will explain what to do if you are owed money,
“A Farmer Owes Us Money” – Payment Issues in Agriculture
The key to success in the agricultural industry is the ability to work closely with those that provide services for every facet of farm life.
Running a farm is a very challenging task, and business owners must build scalable and robust relations with those in some of the following sectors:
- Farm Machinery
- Seeds and fertilizer
- Stockfeed Suppliers
- Veterinary Services
- Livestock auctions
- Livestock transportation
- Agricultural Land rent
- Farm buildings construction
- Farm suppliers
- Agricultural wholesalers
As the farming industry is hundreds of years old, one characteristic of it is that many business relationships are conducted on a verbal basis. Business partners that have been working together for decades do not follow normal processes involving documentation.
As such, if something does happen where debt is incurred, it is usually handled by having a conversation.
Whilst this is true for many cases, there are a number of incidents that require assistance from a third party. If your case fits these circumstances, our premier commercial debt collection service can help.
Debt Collection for the Agricultural Sector – Resolving Payment Issues
If your agricultural business is owed money, it is critical that you recover it as soon as possible.
Any delays can make the process more time consuming, and can even lead to a debt being abandoned.
Historically companies that are within the agricultural sector are slow to process payment. Unlike most businesses that have payment terms of 30 days, farming companies have terms of 40 days on average.
This, combined with slow invoice processing can cause delays. As well as this, the rules for payment can vary depending on the businesses that are working together.
If you are dealing with a farmer that owes you money, it is often better to speak to a debt collection agency at an earlier point after an invoice has been declared overdue. Doing this may save you a great deal of time, money and effort compared to what may have happened if you had kept on waiting.
“A Farmer Owes Me Money!” – Quick Tips For Debt Collection
Regardless of the circumstances surrounding the creation of the debt, it is important that you take steps to recover it as soon as possible.
With this in mind, there are a few quick steps that you can take to help the debt recovery process.
Debt Collection For The Agricultural Sector – Prepare Documentation
Are you are owed money by someone in the agricultural industry and an invoice’s due date has passed? If so, you should prepare all documentation relating to the debt.
For example, any agreements that were signed before goods or services were committed should be found, as well as any receipts or invoices. You should also gather all evidence of correspondence between yourself and the debtor.
You should also gather all of the details you have on file for the debtor themselves, as knowing who to speak to for each possible topic of conversation is important. Many people waste time speaking with the wrong person when recovering a debt, and taking steps to prevent this from happening can help the whole process.
Debt Collection For The Agricultural Sector – Payment Reminders
The best way to resolve matters as easily as possible is to speak to your debtor. In many cases, particularly in the agricultural sector, a short and friendly conversation can resolve the matter quickly.
In some cases, the debtor may simply have forgotten to pay – this is likely for the farming sector, as most deals are arranged verbally with little documentation. A short and polite reminder can prompt the debtor to pay.
A payment reminder should always be concise, polite, professional and clear. It is best to send this via email with a read receipt or through a recorded post. Doing this gives you evidence that the message has been received.
Debt Collection For The Agricultural Sector – Instructing a Debt Collection Agency
If your payment reminders have gone ignored and the debt is still outstanding, the best course of action is to contact a debt collection agency.
A professional commercial debt collection agency can help to enforce the collection of your debt in a low cost and effective manner.
Federal Management has helped thousands of businesses recover money owed to them since 2004.
For a free assessment of your debt, speak to our debt collection experts today.