When you have a customer or client who has yet to pay an invoice or bill, it can be frustrating. While you may understand that they are struggling with financial burden, you also have a business to run. Here are some debt collection methods you can use to attempt to collect the debt owed to you.
Use Multiple Methods of Contacting the Debtor
Start by using more than one method of contacting the debtor. It is possible that their bills have gotten disorganised or they aren't checking their email. Look at the primary method you have been using to contact them, and expand on it. However, only use methods of contact information they provided for you. Do not attempt to call their place of business or try to reach out to family and friends. Look at your records, and contact them through phone, fax, email, and home addresses you have on file for them.
Offer a Payment Plan
Try to work with the debtor if you are able to contact them but they can't afford to pay the full balance at one time. You can either offer a payment plan where they pay a small amount each month, or consider lowering the balance if they are willing to pay it in full. Many times, people are facing hardship and they want to make it right, but just don't have all the money right now. Paying smaller monthly payments to you might be more reasonable of a request.
Hire a Debt Collection Agency
This may not be something you want to do, but sometimes sending the item to collections is your only option. If the person who owes you money has failed to contact you or sent you payment, this might be your best option. It takes all the burden off you, as the debt collector will then take over. They have their own methods of contacting the individual to get the debt paid. It is a good idea to send warning letters to the debtor beforehand to let them know if will be sent to collections if they don't contact you.
Get a Lawyer
Getting legal help to collect a debt is usually when the debt is large. You may need to get a lien on their property or request the debt to be paid to you if the individual ends up filing for bankruptcy. Contact a lawyer if no other method is working and you still want to try and collect on the debt. The attorney can give you the different options available.Share