In some businesses such as restaurants, online stores or retail shops, customers are supposed to pay for their purchases up front, but in the case of businesses operating on invoicing systems, customers have up to 90 days to send in their money to providers. However, in some cases, this does not happen anymore. Some companies have decided to hire collection agencies such as http://www.racingcreditcontrol.co.uk/ to handle this problem, while others consider discussing with their non-paying customers the best solution. Here is a list of the dos and don’ts when dealing with bad payers.
Do contact your client first
The very first day you notice you are dealing with a non-paying customer, it is highly recommended to contact them as soon as possible and to determine the cause of them not paying in due time. There are many reasons why this might happen, such as medical issues or job losses for instance, so it is important to know these things from the very beginning in order to know exactly how to handle the situation.
Don’t wait until it is too late
As it was previously mentioned, it is important to solve this matter as soon as possible. If your client has 30 days available in order to make the payments and if on day 31 you still not have any payments received from that client, you should not wait any day more and start your collection efforts right away.
Do hire a collection agency
At first, it is best to try to reach out the client yourself, but in case they do not answer to any of your letters not even after a certain period, it is best to do some research on the internet and look for a debt recovery agency. It is worth mentioning that the number of these agencies has significantly increased in the past years, so it is for sure that you will find one to match your needs. A collection agency will handle the matter professionally and efficiently and will get you rid of the stress of dealing with those non-paying customers. The secret to benefit from the best results though is to work with an agency that has several years of experience in the domain.
Don’t be afraid to take tougher actions
You should not be afraid to tell your customers you are going to sue them for not paying for the services or products you have provided them with. In case none of the solutions above has proved to be efficient, it is recommended to think of tougher ways to get your money back.