Dealing with a customer that does not want to pay
Dealing with a Customer that Does Not Want to Pay
If you are self-employed or a business owner, dealing with a customer who does not want to pay can be challenging.
Whilst the majority of customers will have no issues with paying their bills on time, others will choose to withhold payments.
Getting paid is vital to your cash flow.
At some point, every business owner will encounter a customer that does not what to pay.
Chasing customers for unpaid bills can be extremely stressful and costly, both in money and time.
If a client owes you money, you must take action as soon as possible to recover the debt.
As experts within the debt collection industry will tell you, the older a debt is the colder it is.
This means that the longer a ‘debt’ remains unpaid, the harder it is to recover in most instances.
Therefore, it is essential that you professionally handle this.
This is the most likely way to recover most or all of the debt in the shortest time.
Every day we speak with angry and frustrated tradesmen who are dealing with late or non-paying customers.
Our debt collection experts have compiled some helpful tips to help you when dealing with a customer that does not want to pay.
With our professional input, we will reach a positive and amicable outcome for all parties.
The Best Ways of Dealing With a Customer That Does Not Want to Pay
Interruptions to your business’s cash flow must be acted on as soon as possible.
There are several methods that can be used to help ensure that customers are reliable when paying their invoices.
Our expert debt collectors have listed their recommended methods for dealing with a customer that does not want to pay.
Get it in Black and White
Some unscrupulous people out there have no intention of paying you and will see your kindness as a weakness.
Ensuring payment terms and agreements (such as a 30 day agreement) are documented will help if any problems were to develop at a later stage.
Back up everything you do with evidence of work and/or goods supplied.
Work with the Customer
Although it is hard not to get frustrated with customers who are not paying you…
.. you should continue to treat the customer like a customer.
Be pleasant and understanding and work with them to reach an agreement.
By sending your customer a letter regarding their unpaid debt you are clarifying that you are serious about getting paid.
All communications between you and your customer should be polite and professional in tone.
If you need to send multiple demand letters, ensure that everything is as clear as possible.
You should also send the invoice again, as well as any other relevant documents.
This is as well as ensuring that you have written evidence.
Stay on Top of Debt
Do not write the debt off regardless of the amount. It is the principal.
Stay on top of the situation and look into different options you can use to recover your debt.
Options for Dealing with a Customer that Does Not Want to Pay
Many small business owners will often be unsure of the best way of handling a situation when a client refused to pay.
Dealing with customers that do not want to pay is a serious issue, and must be handled in the appropriate way.
If performed improperly, getting a customer to agree with paying their invoices may become more difficult.
Ensuring that you receive payment should be the main goal.
You should seek the option which enables you to recover the full amount at the lowest cost.
Typically, business owners choose one of three main options:
Attempting to Recover the Debt In-House
It is common for small businesses to attempt to recover a debt themselves.
Whilst this may seem like a promising option at first…
…it can quickly become one that is too costly in both time and money.
Spending your own valuable time chasing a debt means that you will be unable to focus on tasks that grow your business.
As well as this, the customer may ignore your demands and continue to withhold payment.
After following the steps above, it is better to reach out to a professional debt collection agency right away.
Take Legal Action Through a Small Claims Court
Another common option to deal with clients who refuse to pay is to hire the services of a debt collection solicitor.
In some cases, this can be effective, but it can be very a long and expensive process.
It is common for solicitors to charge large amounts of money for their services.
As such, many find themselves in a position where it can cost more to recover the debt than what it is worth.
Instruct a Debt Collection Agency
There are many advantages to instructing a professional debt collection agency when dealing with a customer that does not want to pay.
An agency will be able to recover any owed money in a prompt, low cost and professional manner.
As well as this, business relationships will not be jeopardised, preserving potential business dealings.
Speak to Frontline Collections
Frontline Collections is the UK’s leading private debt collection agency.
We help thousands of tradesmen and businesses every year recover unpaid invoices and outstanding accounts.
We will provide a free appraisal of your unpaid debt problem and advise if we can help.
This is along with providing you with a realistic idea of a full recovery.
Using a debt collection agency is now viewed as the lowest cost alternative to costly legal proceedings and is worth serious consideration.
These tips for dealing with a customer that does not want to pay will hopefully have helped you with your issue.
If the situation is beyond your control, it helps to know the UK’s leading experts are at hand to assist you.
A pragmatic, Professional and persistent strategy always achieves the best results in our experience.
There are no false promises given and every effort is made to ensure our clients get paid monies owed to them.
So take the first step to recover your unpaid debt today.
Call our friendly new business team now on 0333 043 4426.
We will provide you with a free consultation on your personal debt collection needs.