Someone Owes Me Money! A Guide to Debt Recovery
Someone Owes Me Money! A Guide to Debt Recovery
It is not unusual for both businesses and private individuals to be in a position where someone owes them money.
Private individuals might be owed by a friend or family member that has not repaid money that you have loaned them. If you are a business owner, you may have provided goods or services to a client that has not paid.
Being owed money by anybody is always a stressful situation. This can put a lot of strain both on you and your business. It may even affect your ability to pay your own bills and fulfil financial responsibilities.
Knowing what to do in this situation is critical. Choosing a poor course of action may result in you writing off the debt.
How Do I Find Someone Who Owes Me Money?
Before embarking on debt recovery, it is important that you verify the contact information of the person that owes you money. Whilst this may seem like a basic step, many people have been given false information. This is an attempt on the debtor’s part to evade paying what they owe.
Verifying information that is provided to you before doing business with someone, both personally and professionally, is critical. If you have been given false information, a collection agency may be able to trace the person that owes you money.
If you have information such as phone numbers, credit card or bank account details, gather all of this information together.
How to Get Money Owed to Me
There are various ways to recover money that someone owes you. It is important to remember that every case is unique and must be taken on its own merits. When choosing a debt recovery method, you must take these circumstances into account.
Below are some of the most common ways to recover your debt.
Someone Owes Me Money – Sending Payment Reminders
When you are dealing with a person who owes you money, you should always contact them before escalating the matter. One good way of doing this is to send a payment reminder to the debtor.
The best way to do this is to send either a letter via recorded delivery. You can also send an email with a read receipt. Sending a letter like this (as opposed to a verbal conversation or text messages) ensures that your message has been received.
It is important to remember that the debtor may have a perfectly acceptable reason for why they have not paid you. For example, they may have simply forgotten, or they might be in some kind of financial trouble.
A payment reminder is a good first step to take when someone owes you money as it has many benefits. For instance, it is extremely low-cost and only takes a moment to carry out. As well as this, you may not have to go to the expense of other options if the reminder works.
However, if a debtor is determined not to pay, no amount of reminders will work. Some people will go to any length to avoid paying what they owe and are perfectly happy with wasting your time. It is important to set a cut-off point for sending reminders so that time and money are not wasted.
Arbitration, Negotiation and Dispute Resolution
Another option that may help to resolve matters is to come to an arrangement before escalating matters to a third party. Coming to a conclusion may resolve the matter in a way that is acceptable to all parties involved.
Recovering the money that you are owed is important and is often considered the only objective. However, it is also wise to maintain a good relationship with the debtor. If the case involving a small business is handled improperly, then it could spoil a perfectly viable business relationship. This in turn will prevent you from profiting from future ventures with the company in question.
Someone Owes Me Money – Taking Court or Legal action
When faced with losing money that is owed to them, it is common for people to contact a small claims court. Legal action has historically been a viable option for debt recovery. As a result, it is usually the first thing that comes to peoples minds.
It is easy to submit a court claim, with solicitors offering legal advice and the ability to claim online. It must be noted that chasing a debtor via a county court will be a very expensive way to recover money.
Court fees and legal expenses can mount up very quickly. This rising cost forces many people to write a debt off, whilst still having to pay their court costs.
Someone Owes Me Money – Instructing a Debt Collection Agency
Using a debt collection agency to recover money that is owed to you is increasingly popular. A professional debt recovery agency will take all steps required in order to enforce collection.
As well as being an effective way to collect a debt, an agency will incur a lower cost than other methods.
Frontline Collections have helped both businesses and private individuals recover money owed to them since 2005. If someone owes your money, speak to one of our friendly debt collection experts now.