Top 5 Tips for collecting a Debt from a Company
Top Tips for Collecting a Debt From a Company
Looking for the guidance of collecting a debt from a company? If a company owes you money then these essential points can help you get paid. Our expert team have compiled these simple tips for collecting a commercial debt from a company.
Being owed money can be a challenging situation but there are a few things you can do. Most people have been owed money by a company at some stage, so do not despair. When your cash flow and bank account is becoming strained due to non-payments, this can be very stressful.
You can empower yourself by taking positive action, and by choosing the right debt collection process.
Not getting paid for goods or services provided is a real headache. Frustration may cause you to think irrational thoughts of collection action but you must resist. Heading over to the company’s premises with an aggressive mindset could land you in trouble, as could an angry phone call.
It is always better to adopt a legal and calculated approach to these matters! It is not uncommon for companies not to pay their dues on time. If you have been around a while you will know that some business owners just play games when it comes to business payments.
Collecting a Debt From a Business
There are different reasons for a company not paying and usually they fall into one of these two categories.
- The company has normally paid on time but has financial issues making them unable to pay
- The company is deliberately not paying for its own gain
Of course, there are situations where the company may have a valid dispute. This has to be documented and be in line with any terms on which your relationship was based. They cannot simply say, “we’re not paying”, which is not acceptable in any circumstance.
The key thing to understand when collecting a debt from a company or business is that everything happens for a reason. Not all situations are the same and everything happens on a per case basis. We know this better than anyone having dealt with hundreds of thousands of company not paid cases.
Many business owners choose to take legal action right away. Whilst this can be an effective way of collecting a debt from a company, it can be extremely expensive. This causes many businesses to write off the debt, as the cost of a collection this way is too high.
1. Stay Calm and Focused
You have provided goods or services in good faith. You want to be rightfully paid for what you have provided, that is natural. Do not let frustration take over when you feel somebody is taking advantage of your good nature.
Your mental state will affect the outcome of this situation so clear thought is essential.
2. Document Everything
Ensure you have invoiced correctly and they have been sent to the correct persons. You should keep a copy of any reminders you have sent in case you need to refer back to them. If you are owed money but got no contract then things can be a little trickier, but a good debt collector may be able to help.
3. Avoid Harassment or Aggression
Whilst persistence plays a major role in the debt recovery process from a business, there are laws that need to be respected. There is a fine line between professional communication and threatening behaviour. Watch this helpful debt collection services video for tips on being compliant when collecting a debt from a company.
4. Be Flexible
Setting up payment terms on all new agreements is beneficial, and can help to prevent debt from occurring in the first place. It is common for businesses, both a small and limited company, to operate on payment terms of 30 days.
5. Hire a Professional Debt Collection Agency
If the company is having financial struggles, it may be in your interest to accept a repayment plan. Getting your business debt paid in chunks is better than nothing at all, so be flexible.
If your attempts at recovering debts from a company have borne no fruit, stay calm. There is expert assistance at hand. A professional debt collection agency can help when everything else fails.
Being owed money is no laughing matter, and it can cause major issues if not acted upon. Hundreds of thousands of small businesses have collapsed in the last few years. This was simply down to the fact they did not take action to collect what was owed.
Working with a professional debt collection agency will cover those bases and provide a bespoke service to your needs.
If you need help collecting a debt from a company, speak to us today. Our friendly advisers will best understand the situation and offer advice. There is usually an option to resolve it and keep the cost to a minimum.
Frontline Collections does not charge by the hour and for a small instruction fee, indemnify you of any disbursements or fees.
Collecting a debt from a business is done the easy way. Our friendly team of debt collection experts is happy to help you today