At times, requesting invoice payments is not an easy task if the debtors are reluctant to pay or have no ability to pay the liabilities. Even though you have the best customers in your business, it is important to keep in mind that your business could close at any moment if you pity them. As a result, this writing will explain some of the easy and affordable debt recovery systems that could put you back in control of your business.
First and foremost, you should contact your clients through phone or email reminding them about their debts. Sometimes the client may have deposited the money in the wrong bank account, or they forgot about the debt. If your client is in such situation, make sure you include your bank and contact details as well as your preferred mode of payment. The minute you hand them this information, it is to your advantage since the debtor will not end up in this situation again.
Conversely, if you do not receive any response from the defaulter, it is essential to remind them again about the debt via the phone or 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.Sometimes, this debt recovery process can help to create a strong business bond with your customer in future.
If all the above debt recovery processes do not do the job; make sure you send them a formal demand letter. Conversely, this formal letter of request should act as a last resort in demanding payments since it can damage your relationship with your customer.
Again, if the demand letter does not do the job, then your next bet would be to involve a debt recovery solicitor. A liability collection attorney will try to retrieve your money by filing a claim against the debtor in court. Once the debt recovery solicitor files the lawsuit; the next thing will be to wait for the case to be determined by the magistrate. 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.
In conclusion, the debt recovery process varies from one state to another. As such it is imperative to use a debt recovery solicitor to make the process less stressful. If you consider taking this step, it will not only make your debtor settle the debt, but you will also have an in-depth understanding of how the debt recovery procedure should be.