What can i do to get my money?
Small business debt collection is not an easy task, but there are some thing you can do.
Avoid harassing the people that owe you money.
This is both a good customer service policy as well as a good legal policy.
If your actions can be considered harassing, you may wind up losing a customer as well as facing a legal challenge. If you call your debtors, be sure not to leave more than one message per day, and never threaten or speak ill of a debtor.
Be direct, listen, and don’t get personal.
Keep your calls short and be specific.
Your goal, according to collections expert Carol Frischer, should be to prevent the debtor from taking the call personally. That is, from associating the failure to pay as meaning a failure in life. Always stay calm but always maintain a sense of urgency about getting paid.
The letters that you write to your customers and clients that owe money are called demand letters.
You should be sure to send these in addition to making phone calls. Save copies of each letter you send. They may be useful if you have to go to a collections agency.
If the customer has genuine financial problems, ask what amount they can realistically afford to pay.
Consider extending the time for payment if the customer agrees in writing to a new payment schedule. Call the day before the next scheduled payment is due to be sure the customer plans to respect the agreement.
Offer to settle for less than is due.
If you think that a debtor would be willing to do so, you may want to offer to settle for less than is due to your small business.
This is an often used strategy on clients and customers that have no real hope of paying off the debt they owe. This settlement should be made official in a legal document that shows a payment of less than is due that satisfies the entire debt.
Turn the account over to a collection agency.
Turning a debt over to collections is your last resort.
A collection agency will usually pay you half of what it recovers. Of course, in some cases, half is better than nothing. Collection agencies are professionals when it comes to getting money that is past due. Therefore, it is no wonder that they write great demand letters as well.