It can be a daunting task to request payments from defaulters who are either not ready to settle that debt or in no capacity to pay 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. For that reason, this article will highlight some of the debt recovery processes that you should use to remind your clients about their outstanding debts.
First and foremost, you should contact your clients through phone or email reminding them about their debts. At times, it could be that they did not default paying the liability, but other circumstances such as paying the invoices to another person by using the wrong bank account or they could have forgotten about the debt led you into thinking that they defaulted. 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.
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. Still, if they miss paying after these two extended periods, you should contact the customer with a final notice. 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 attempts fail, consider sending them a debt recovery 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.
Further to that, you should think about involving a debt recovery attorney if the customer defaults to settle the money he or she owes you even after trying to reach out on several occasions.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. Therefore, it is of paramount importance to involve a debt lawyer in debt recovery process since they can retrieve back your money quickly.Not only will you get back your money, but you will understand how the debt collection method operates.