What Should I Do If Someone Owes Me Money

What Should I Do If Someone Owes Me Money?

When owed money, do you find yourself thinking  “What Should I Do If Someone Owes Me Money?” If this is the case, it is extremely important to know how to recover the money as quickly and efficiently as possible.

There could be many reasons as to why you are owed money by the debtor in question. The most important thing that matters at the end of the day is that you get your money back.

There are many different types of people that could owe you money, including:

• Private Individuals
• Customers
• Friends
• Absconded Tenants
• An employer who owes you money
• Someone from another country

If you are a small business, self-employed or private individual, it is more important than ever to not put pressure onto your cashflow.

Based on research provided by the Federation of Small Businesses, around 50,000 small businesses in the UK have to close has a result of late or non-payment each year. This should put into perspective how crucial it is that you are paid the money which you are owed, regardless of who from, as just one debt could impact you financially.

It is important that you know what to do when someone owes you money, as making the wrong choices can be far worse than making none at all, and losing the money altogether.

If you are owed money by someone, this can, on some occasions, be resolved quickly and amicably by simple means of professional communication.

In this article, our team of experts have put together a 3-step guide which will detail the steps on how you can get your money back to you from your debtor.

What Should I Do If Someone Owes Me Money? 3 Steps On What To Do

1. Send A Friendly Reminder To The Debtor

The first thing you should do when collecting a debt is to send them a friendly reminder. This sounds extremely simple to do and is a good first step which can often reveal if the debtor intends to pay you at all.

This reminder can be done through email or through a letter. These means of communication all provide proof that a reminder was sent, should you need this in the future.

You should ensure that this reminder is polite and professional and that it clearly states how much they owe and when the debt was incurred. Clear and effective communication is the key to all forms of problem-solving.

If your debtor is a customer, it may be worthwhile to find out who will be paying you as to not prolong the payment. Speaking to the right person will negate any potential loss of communication going forward.

2. Be Persistent In Chasing The Debtor

If the initial reminder has shown no form of payment forthcoming, it is time to move onto further methods of communication.

Implementing a multi-channel approach into your communication efforts should demonstrate the urgency for the money to be paid.

Making a phone call to the debtor is a good avenue to go down, after all, it is a lot easier to ignore a message than it is a phone call, so don’t give the debtor an opportunity to brush you off.

We have noticed that a lot of clients over the years have felt hesitant to phone their debtors as some see this as unnecessary chasing. Having a phone call with your debtor is still an acceptable and polite way of reminding what they owe, especially when considering the circumstances.

Should this not work, it is imperative that you continue to chase. It is only right that the money you have given to them is returned to you or the goods and services you have provided have been paid for.

3. Use A Private Debt Collection Agency – Frontline Collections

So, if you’re asking yourself “What Should I Do If Someone Owes Me Money?”, the answer is simple – use a private debt collection agency.

Have the first two steps failed to bring any form of successful recovery? If so, then it is time to instruct the services of a Professional Private Debt Collection Agency such as Frontline Collections.

We are the solution for your debt collection requirements, no matter the type debtor or amount of money. Our award-winning team of debt recovery experts have over a hundred years combined industry experience in the collection of unpaid amounts.

It can make you feel extremely disappointed when someone, especially a friend or someone close to you, owes you money. At Frontline Collections we will ensure that the relationship between you and your debtor is not jeopardised, which will not compromise any future opportunities. This is especially important for those who are self-employed or who run a small business.

Our experience is demonstrated across a wide range of sectors including Independent Schools, Dental Practices, Veterinary Practices and Nurseries. We have collected on behalf of self-employed individuals, freelancers and those who have International Debtors.

Read more about our International Debt Collection solution here.

Be proactive and contact our expert team today as to not prolong the recovery of money that is owed to you.