When To Write Debt Off And When To Keep Trying

Recovering outstanding debt can be a nightmare for any company that relies on this funding for expansions or to remain operational. It can be very challenging to get clients to pay up, especially since there are various restrictions as to what you may and may not do while trying to recover your funds. 

At some point, you might get so fed up with trying to recover debts, you might just consider giving up entirely. So should you simply write off all of your bad debt? When is bad debt usually written off? And is there an alternative solution that doesn’t involve as much effort? Let’s take a look.

What is The Point of Writing off Bad Debt?

Bad debt is usually written off when you are unable to connect with a client or when they show no willingness to pay up. The point of writing off bad debt is so you won’t have to spend any more funds, effort, or time on something that is a lost cause. Writing off bad debt can be quite relieving to some businesses because working with clients who won’t pay up can be very frustrating. By writing off the debt, your company accepts its losses and moves on to focus on clients who deserve your time and effort.

When To Write Off Bad Debt

Deciding to simply give up on funds that your company worked hard to generate can be a tough blow to handle. In the back of your mind, there will always be the prospect that the client might eventually decide to pay up. 

So when do you decide to give up? Below are three signs that it may be time to write off a debt. 

1. When You Took All of the Sufficient Steps

Don’t give up on your funds until you have taken all the steps to recover your money. Your business will have to suffer a huge loss if you simply give up.

Did you communicate with the debtor? Did you establish clear steps for reimbursement? Did you explain the due amount to the client? Did you offer payment terms or a payment plan? These are just a few of the many steps you need to take before you feel like you can write off bad debt.

2. After Working With Debt Collectors

One of the best ways to recover bad debt without any effort from your side is by using experts like Vic Collect. This debt recovery company takes full charge of all of your bad debtors and they take all the legal steps if necessary to recover the funds. Debt recovery companies are surprisingly effective in recovering bad debts. You should never give up on your debts until you let a debt collector give the recovery process a try.

3. After Patiently Waiting For An Extended Period

Debt collection can be a tedious process. It is impossible to tell what the financial state of the debtor might be. Your debtor might be stuck in a challenging financial situation and this situation could clear up after a few months. When the financial situation improves, the debtor is much more likely to pay up. It is important to be patient with debtors and to give them enough time to recover before you decide to simply give up. 

Contact Vic Collect for Professional Debt Recovery

If you haven’t given enough time or didn’t use Vic Collect to assist in your debt collection processes then it is not time to give up just yet. Give our debt collection specialists a call and we will take over the tedious steps involved in trying to recover the debt for you. 

Vic Collect can ensure that all of the right debt recovery steps are taken and is the ultimate solution if you want to increase your chances of being reimbursed and clear bad debt without writing off what is rightfully yours.