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. For that reason, this article will highlight some of the debt recovery processes that you should use to remind your clients about their outstanding debts.
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. Nonetheless, if the above debt processes fail, you ought to give them a final extension period to resettle the debt.At this juncture, visit your debtor and warn them about the invoice.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.
Again, if the demand letter does not do the job, then your next bet would be to involve a debt recovery solicitor. A debt recovery solicitor will strive hard to recover your debts through the court by filing a lawsuit against your customer. As soon as the debt recovery attorney initiates the legal proceedings; the next thing you have to do is to wait upon the arbiter to make a decision about the matter. If you win the case, your debtor will have to pay you back the legal proceedings fees you incurred as well as settling the invoice payments you owe him.
Finally, it is important to know that the debt collection methods differ from one country to another. Therefore, it is of paramount importance to involve a debt lawyer in debt recovery process since they can retrieve back your money quickly.Not only will you get back your money, but you will understand how the debt collection method operates.