Debt Collection for Small Businesses
Small Business Debt Collection
As a small business owner, it can be very frustrating, stressful and counter productive to try and collect debts that clients and customers owe them. After all, the productivity and livelihood of a Small business depends entirely on its customers paying for the services or products they have received. When a customer does not pay what they owe, the future of a small business could be in jeopardy.
If you are one of the many Small Business owners in the UK, there are some well advised tips to consider or you may risk not getting paid at all.
Never lose your temper with customers that are ignoring your attempts to get paid, just take a breath and remember that you are a professional businessperson. You need to handle this matter without coming across as threatening or abusive to them. Otherwise, your clients will never want to pay you what they owe.
There are generally a few possible reasons that customers don’t pay their debts. They are as follows:
- They are facing financial hardship and simply cannot afford to make payment
- They are purposely not making their payments to avoid their financial responsibilities to you.
- They are unhappy with the goods/services supplied and have a legitimate dispute
If you are lucky, then your clients are only facing short term financial hardship. This means that they want to make their payments to you, but they don’t have the money to do so. In most cases, they probably feel bad about defaulting on their financial obligation to you. The best way to approach this situation is to contact the client and try to work out a new payment plan or possibly a lower debt amount.
Regardless, make sure you document all your communication with clients. All letters sent through the mail should be certified and copied. All emails to clients should be saved. As for your phone calls with clients, you’ll want to every conversation you have with them. All this can be used as evidence in case you end up in a court battle with them.
Don’t call a client every day to inquire about the debt they owe. This might come off as harassment. Try contacting them every 7 days or so, whether it’s by email or phone. A phone call is probably better because it allows for direct real-time communication.
When it gets to the point where the client hasn’t made any attempt to make any form of payment over a period of a month or two, then you can proceed to a more drastic step beyond merely contacting them. You can either hire a Professional Small Business Debt Collection Agency to pursue the debt on your company’s behalf or if appropriate, consider hiring a Lawyer to begin costly legal proceedings.
At Frontline Collections, we provide a FREE pre action analysis and measure the debtor’s ability to pay. You would be amazed how many people claim they cannot afford to pay their debts yet still manage a two weeks all inclusive holiday every year and a life of considerable luxury.
Chasing payment when you have provided services or goods in good faith can be an extremely stressful one. Small Business owners often take it very personally when a customer does not pay and it is very understandable.
At Frontline Collections, we totally get these frustrations and that is why our services are designed to be as transparent as possible with a Low-Cost fixed pricing structure that covers all bases and guarantees to minimize the cost to our clients.
We do not seek to profit from the misery of our clients and that is why there are no hidden charges and we charge for a successful outcome only by way of a small commission payable.
There are no abortive costs like others and we are not a front for expensive law firms. Since 2005, Frontline Collections has provided Small Business Debt Collection services in the UK collecting millions owed to them.
So do not delay, act now and speak to one of our friendly Small Business Advisers on how we can help you and your Business.