The Best Ways To Collect Bad Debts – Ideas From An Auckland Debt Recovery Lawyer
Trying to collect bad debts is something that most small business owners will have to face at some point. The problem is that many business owners do not know what the best ways to do this are. This is why many small businesses end up writing the debt off and losing money in the process. There are a number of methods that you should look at using when trying to collect a bad debt. The last resort is going to an Auckland debt recovery lawyer so here are some tips.
Work With Your Customer
There are times when a bad debt can be solved by simply calling the customer and talking to them. Finding out why a customer has not made payment is a good step to figuring out the best approach to take. If the customer is suffering from cash flow problems, you should consider setting up a payment plan. Payment plans will work for your business and for the customer as you will be getting the money and the customer will not be paying out more than they can afford.
There are times when you contact a customer and they have simply been inundated with invoices and not got around to paying you yet. In some of these cases, the simple act of calling could push your invoice to the top of the pile to be paid. Of course, there are other times when the customer will simply appreciate your willingness to work with them and make every effort to pay you.
Go In Person
There are many experts who believe that one of the best ways to get bad debts paid is to visit the customer in person. Letters asking for payments can be avoided and calls can be left unanswered, but it is harder to avoid you when you arrive at the customer’s offices personally. If you are not getting a response to other methods, you should try showing up unannounced at the office and wait until the accounts payable manager is available.
This will get some attention to the fact that they have not paid you. Of course, when you confront your customer in person, you do need to be careful. You must remain professional and if the customer starts to become aggressive you need to assess whether it is in your best interests to remain on the premises.
Try Offering A Settlement
If your customer is not interested in working with you to clear the full bad debt, you should consider offering a settlement. In these cases, you will allow the customer to pay part of the debt and write off the rest. This allows you to get some of the money that is owed and the customer will feel like they have come out on top.
Of course, this should be a last resort as you will be losing some of the money that the customer owes you. You should only consider a settlement if there is no other way that the money could be recovered from the customer. You also need to ensure that you are getting the majority of the money and not writing off too much.
Auckland Debt Recovery Lawyer
If all else fails, then your next option is to contact an Auckland debt recovery lawyer. They will be able to give you sound advice on your rights, and the best way forward in recovering your money. A highly recommended Auckland debt recovery lawyer is McVeagh Fleming and Co, on Queen St. Click the link for their website.