Debtors who don’t pay up can cause a lot of damage to a small company. These financial losses can be especially difficult for creditors who might have a lot of debtors who just don’t pay up no matter what they do.
It is very important to have a sound strategy in place for these types of situations because it can help you stay afloat during times when your cashflow problems might threaten to pull your business down. Luckily, there are still some ways in which you can get your funds back or get debtors to pay up. Let’s take a look at the best way to get your debtors to pay up.
Firstly, it is very important to try to keep things as professional as possible. When you are discussing things with your debtor, you should try to stay pleasant and positive. Try going over the agreements and gently remind your debtors of their due debt.
It is best not to resolve any threats on your own and not to get caught in any arguments. If things get heated then just walk away because arguments or physical threats can leave you in a heap of trouble and can make the situation a lot worse.
If gentle coercion won’t work then the best alternative is to get help from a debt collection specialist. These companies are specialists at recovering debt and restoring credit and will ensure that everything is handled professionally and legally.
Using a third-party member for debt collection is a lot safer because the debt collector isn’t too close to the case and will never act so rashly that it might cause future conflicts.
Debt collectors use a variety of legal and professional techniques to get debtors to pay up.
First, the debt collector might send a letter of demand to start the collection procedure. This letter of demand is ideal because it gives the debtor a clear image of the exact amount they owe and it will give them a good idea of what the following steps might involve. Some debt collectors can even help debtors find an easier way to make repayments since they can assist with a payment arrangement.
After a letter of demand has been sent, the debt collector can give the debtor a phone call. During these calls, the payment options can be discussed and all details can be sorted out.
Debt collectors will also send out text messages reminding the debtor to pay or that can encourage them to start the repayment process.
Emails with proof of debt or statements can also be sent out to the debtor to convince them that they are, in fact, responsible for the payment.
When all else fails, the debt collector will send out a final notice. If this notice isn’t paid within 7 days the case can be taken further for litigation.
Being a debt collector can offer a lot of great benefits but the very best benefit is the legal advice they can provide. You will be provided with information about the best legal steps to take for recovering your debt and can even find a lawyer to help represent you so you can stand the best possible chance of regaining your funds.
A debt collection service is the very best chance you have of getting your funds back. If you need someone to help you through your debt collection process then you should give VIC Collect a call. We can help you recover any amount of debt that you might owe so you can keep your company operational during tough times.
The commission we charge on debts collected is as per the below Commission Rate Table. The percentage charged is set on the debt amount you hand to us to collect.
39 The Esplanade, Seymour VIC 3660