How To Collect Debt
Learning how to collect debt is as easy as following these steps. People fear confrontation far more than death. If someone owes you money and has delayed repayment several times, it is often hard not to be confrontational. If you are a business owner, then you have to strike a balance between keeping a paying customer and collecting an outstanding debt. Fear not; this step-by-step article will help you find a way to collect debts that are owed to you.
- Be gentle and polite. Treat others the way you want to be treated. Think of it as a pleasant business transaction. If you are dealing with a repeat customer, just remind them of the debt politely with a bill.
- Email or mail the bill to the customer's office. Try to separate business life from personal life. A bill is the easiest way to remind a person that he owns you money, but at the same time it is also easy for him to forget and delay the payment. Therefore, this should be only the starting point for your debt collection.
- Give your customer a call or arrange a brief visit. Phone calls and visitation are the next steps in collecting debt. These are ways to remind your customer that you know and care about the payment.
- Follow up with another email or phone call. Nagging always helps in collecting debt. It is also a good way to remind the debtor that you have not forgotten about your money.
- Take a stand. Assess a late fee and demand the bill to be paid within ten days. Often times, the debtor would be scared enough to get in contact with you. He may try to pay up as soon as possible in exchange for the late fee being forgiven. Late fees are never part of your bill to begin with anyway.
- Use a professional. There are a lot of debt agencies out there that are more than willing to do the dirty work for you. The only problem is that they will charge you a hefty fee for your money. Therefore, do not use them for small amounts and use them only as a last resort.
Make sure you are aware of the legal procedures surrounding collecting debt. Fail to follow the law may result in substantial monetary loss. Please consult with a lawyer if you are unsure of the procedures in your state.