Sometimes collecting debts can be an overwhelming task especially when you have to deal with customers who are either unwilling to pay your debt or are in no position to repay it. However loyal your customers are, you should always remember that you are running a business, so if you sympathize with them, you may end up closing your business. Therefore, this editorial will expound on some of the debt recovery procedures that you can use to recover your money.
First and foremost, you should contact your clients through phone or email reminding them about their debts. 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.By doing this, your client will quickly act on paying the invoice.
On the other hand, if this debt recovery procedure fails and the debtor has not called you or paid the mortgage, consider contacting them again either by phone, email or mail. Nonetheless, if the above debt processes fail, you ought to give them a final extension period to resettle the debt.Here, you can try to make direct contact with them by visiting them to inquire about the payments. Sometimes, this debt recovery process can help to create a strong business bond with your customer in future.
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.Nevertheless, this debt recovery letter should be the recourse you take against your debtors can destroy your business rapport with them.
Again, if the demand letter does not do the job, then your next bet would be to involve a debt recovery solicitor. Involving a debt recovery lawyer will work to your advantage once the lawyer files a case against the defaulter. At this point, you will have to wait until the judge passes judgment. 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. As such it is imperative to use a debt recovery solicitor to make the process less stressful. Not only will you get back your money, but you will understand how the debt collection method operates.