As businesses deal with the burden of debt collection from late and non-paying customers, the inevitable question that arises, again and again, is how to successfully collect a debt?
As all businesses face cash flow and account receivable challenges, the answer to this question has to be dealt with sooner rather than later. Many companies are hard-pressed to find the extra time, energy, and resources required to go about the extensive work needed for debt collection.
You can easily contact the specialised debt collection agency & get quick debt recovery services. This is even more important as recent laws affecting how creditors can go after delinquent debtors have been enacted.
Image Source: Google
As the business owner, you are the most invested and familiar with your customers, as well as how unpaid debts affect your business negatively. Because of your unique customer relationship, it is important to consider the debt collection process at the beginning of the relationship, before a problem arises.
For instance, this means having a clearly written policy in your customer application or agreement. It should include language about when payment is expected, late fees, and any additional charges, such as the cost of collections should the account be turned over to a collection agency.
In many states, the cost of debt collection can be passed onto the debtor, but only if it is included and stated in the original customer application or agreement. Be sure to check with your local attorney. In order to be legal, this language has to be included in the original signed customer agreement. Again, seek the counsel of your attorney about this.