Collection of Unpaid Storage Fees
Collection of Unpaid Storage Fees
The storage industry is one of the largest commercial sectors in the UK and the world. In Britain, the industry contributes over £540million to the economy.
Despite this success, the storage industry suffers from non-paying customers just as every other industry does. When confronted with this issue, it is important to know how to proceed professionally.
It may sound surprising that people choose to withhold payment from storage companies. After all, in doing so they may not be able to use the services of the storage facility in question. Unfortunately, many people will go to almost any length to avoid making a payment.
On the subject of the collection of unpaid storage fees, there are several different options that business owners can take. When making a decision, many factors might need to be taken into account. For example, administrative costs, effectiveness and location may all factor in.
We asked our debt collection experts on the best ways to handle outstanding fees in the storage industry.
Collection of Unpaid Storage Fees – What to Do When a Customer Fails to Pay
Ensuring that customers make prompt payment is one of the most important parts of managing storage units. If a customer fails to pay, t can cause a great number of problems for the business that is owed money.
Has your customer has not paid you for safely keeping their stored goods? If so, there are several steps you can take to recover your money.
Collection of Unpaid Storage Fees – Remain Calm and Gather Documentation
If you are owed money from unpaid storage fees, it is only natural to feel angry, frustrated and disappointed. Before taking any action, it is important to temper your emotions. This is important as it does have an effect on the debt recovery process.
For instance, many debtors seek to offend the person they owe money to. This is with the aim of provoking an argument, which may then give them grounds to withhold payment.
Prior to moving forward with a debt collection process, it is better to gather any relevant documentation for your case. For example, if you have any contracts, invoices, terms and conditions, receipts, payment agreements or even cheques.
As well as this, you should ensure that you are speaking to the correct person who can pay the debt. For example, speaking to a secretary instead of the managing director who can authorise a payment is a waste of time. Double-check the phone number and the email address of the person you need to speak to are correct.
Collection of Unpaid Storage Fees – Contact the Debtor
Once you have gathered all of the necessary documentation, it is good to contact the debtor. The best way to do this is by sending either a letter through registered or recorded delivery. If this is not an option, a good alternative is to send an email with a read receipt.
It is important to word your message in a way that is professional. You should inform your customer of what they owe you in a way that is clear. You should also include copies of any relevant documents.
It is good to send at least three messages like this when chasing a customer that has not paid. You should leave an appropriate amount of time between them to allow the debtor to respond. If they do not, you can send an official notice in writing starting your intention to escalate the matter.
In the case of a storage company, the customer may also be in breach of contract at this point. It is common for some storage companies to begin selling the goods that they have stored. In other cases, they may apply a late payment fee to the debt in order to prompt payment to be made.
Collection of Unpaid Storage Fees – Hire a Professional Debt Collection Agency
Even with the best preventative measures, there will always be those individuals that will not pay. If this is the case, it may not be cost-effective to continue chasing them by yourself.
If your customer is refusing to pay, it is time to seek professional help. Historically it has been common for people to obtain a court order and take their case through the legal process. However, it is becoming more beneficial to instruct a professional debt collection agency.
A debt collection agency provides an effective recovery service at a low cost. It will be able to resolve the matter amicably for all parties and recover the maximum amount possible.
Speak to our debt collection experts today for help in recovering your money.