Every business falls foul to slow playing or no paying customers at one point or another. Having a client not pay can be a total nightmare, especially if you are relying on that money to put back into your business. That is why knowing how to deal with difficult debtors is so important, as a lack of payment could potentially bring your business to a standstill, especially in the early stages.
The fact is that debt can be a problem for businesses of all shapes and sizes and can cause all manner of issues. It can sometimes seem like leaving debtors alone to get the money together to pay what they owe your business is the right choice, but usually, this just draws out the time it takes for them to send payment.
While handling difficult clients requires patience and understanding, it is also important to ensure that you are not giving them too long to make payment. The last thing any business owner wants is ending up with a debtor that claims that they do not owe them any money, trying to wheedle their way out of paying.
Handling difficult debtors can be tricky, but as a business owner, it is something that you need to learn to deal with if you are going to run a successful business. Bearing that in mind, below are some tips for making the process of dealing with difficult debtors a little easier.
Have one go-to contact
You don’t want to be passed from pillar to post each time you call a company that owes you money. So from when you begin dealing with them, ensure that you have one go-to contact who you always deal with, and who is responsible for providing payments.
Don’t allow yourself to be passed around when you call, ask to speak to your go-to contact and always deal with them. If, and only if, you don’t get anywhere with them, the next step could be to acquire the contact details for the business owner themselves, if that is not who you are already dealing with, and discuss the situation with them.
Be professional but firm
Although communicating with difficult people can be stressful, try to stay as calm and collected as possible. It is important to remember that you are representing your company, which is why it is so crucial that you remain professional at all times.
Of course, while being professional is vital, it is also important to be firm when dealing with debtors. Make it clear that you expect payment for your goods or services, and that you will take steps to ensure that you receive any money that you are owed.
Take further action
Should the debtor fail to respond to your requests for payment, the next step is to take further action. The action that you choose to take is up to you and will depend on your personal circumstances. A lot of business owners choose to sell unpaid invoices to companies like factoringcompany.net, for instance. As that way, they receive their payment quickly.
Another option could be to report the company to credit rating agencies for defaulting on payment. If this doesn’t make the debtor more willing to pay, the next step could be to consider taking legal action against them. This may not be a step that you want to take, but if it is the only way to ensure that a debtor makes payment, it is necessary.
There you have it, a guide to dealing with debtors in business and ensuring that your company gets what it is owed.
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