Non-paying customers – debt collection strategies that actually work

 

Whether you are the owner of a small company or of a bigger fish in the pond, you have probably dealt with non-paying customers at some point. This can be quite frustrating and daunting at the same time, because you never know for sure how to react and what it can be done to recover the loss and sometimes working with an outsourced credit control company is the only solution remaining. Here is what experts in the field advise you to do when it comes to bad payers.

Make payment guidelines clear to customers

Well, one of the first moves you have to do even before you end up dealing with bad payers is to make them aware of the payment guidelines of your company. Set up some strict rules regarding how the payment must be performed and stick to them. If you present customers these rules from the very beginning, you significantly reduce the number of non-paying customers.

Get everything in writing

Handing customers in written contracts or agreements regarding the payment expectations may make them more aware of the consequences of not respecting the rules. Go over the contract together with your customer and present them the benefits as well as the risks included in the payment policy section. This way they cannot tell you “I didn’t know about this” or “You didn’t tell me about this.”

Send them several reminders

The moment you notice your customers are even one day late with their payment, start sending them reminders. While it may be true that some people do not want to pay their debts, there are others that may have simply forgotten about it and once they receive the first reminder they ensure to make the payment in the shortest time possible. Send them a series of reminders if they do not respond to the first one.

Debt collection agencies can solve the problem

If you have already sent your bad-paying customers several reminders and they have still not responded to any of them, it is time to take some serious action and resort to the services of a professional and reliable debt collection agency. Do your online research and go for the best one in the industry. These agencies know the laws and regulations regarding debt payment and have clearly established strategies, so they know exactly what to do in the case of bad payers. Let them do their work and your company will be recovering your debts in no time.

Post Author: Tim Frawley