The major challenge for most business owners is the idea of late payments from customers that require debt recovery. When operating a business, it is important to take your account receivables seriously because it can close down your business when customers don’t pay their bills. Generally, debt recovery has to be initiated when an invoice is more than three months overdue. It is certainly not easy to recover money from a delinquent customer who decides not to pay. The process can be long, difficult and arduous because many customers will ignore your phone calls, notices in the mail and email messages.
However, there are various viable and effective solutions these days that can be implemented to collect money from customers. You don’t have to be expert at debt recovery to utilize any of these solutions. You can solicit professional help from a debt recovery specialist, if you have a difficult time carrying out the steps to collect your money from customers. Once handled by a professional, you will save time and money, allowing the process to be hands-off.
The Debt Recovery Firm
There are some factors to take into consideration, though, when soliciting the help of a debt recovery professional. You should always make sure that the debt recovery firm is licensed to operate in the account collection business. You should also ensure that the firm is fully insured. Be sure to ask the firm for the appropriate fee structure prior to hiring them. Not all debt recovery firms have the same fee structure. Do your research. Ask the firm if you will be given access to an online account to check the status of the collections on an ongoing basis. This will save you time from having to call the firm to inquire about the status of each account. In fact, it will make the process smoother.
Most debt collection firms work in a similar manner. First, the firm will send out debit collection notices to the customer to repay the debt. Yes, this is something that you already may have done, but this is the ideal process to initiate contact with the customer to let the customer know that the account is in collection. With no response from the customer, a solicitor letter will be sent, giving the customer a warning notice of seven days. Next, if no further response, the firm will take legal action, which is the last course of action to take against the customer.
In addition to saving time, money and effort on your part to collect, there are several benefits to using the services of a debt collection agency. It frees up time to grow the business and focus on other important things. You will be able to track the continuous process of the collection and then deciding how to handle a customer that just won’t budge. Most consumers, though, will try to work with the collection agency to find the best solution, even it means debt settlement.