Frequent Mistakes Made During Debt Collection

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By Judy Anderson


It is up to the business owner to assure that their clients pay are paying on time. When clients choose not to pay, you should know what to do. It is never a good idea to call clients to vent your frustrations or call them names. You will want to avoid such methods when attempting to collect debts.

Other methods to avoid:

Failure to Follow-up

Not following up with debtors will provide them with no incentive to pay. Not addressing a debt allows clients to forget about it. However, you can be sure that they never really forget that they owe you money; they have just put it to the back of their minds. They may even believe that they will pay you off once they have struck it rich. By following up with those who owe you, you keep the money they owe you at the forefront of their mind and they are far more likely to send you the money.

Being Soft on Your Debtors

Many business owners have a problem with yelling at their clients, even if they're late on a payment. Even if they downright refuse to pay, there are some business owners out there who will still try to appease the client in the hopes that it will change the client's mind. If you go aren't hard enough on your creditors, they won't see you as a threat. You'll become one of those debts that's just swept under the rug. On the other hand, if you threaten your clients with collections or legal action, then you'll be seen as threatening and you'll be more likely to get your money.

Threats and Harassment

The number one no-no when it comes to business collection is to never threaten or harass your clients. No matter how late they are with their payment, you cannot engage in this type of behavior. For one, it's illegal and you wouldn't want to break the law when trying to collect your debt. Harassment is also the wrong way to go. Calling the person all the time and sending threatening letters, it's just going to make the client want to not pay you even more. Plus, it can tarnish your reputation if word gets around about your behavior.

The Alternative

If you would like to avoid some common mistakes that business owners make when attempting to collect debts, hire a professional debt collections attorney. They will sit with you to go over the case from the point it started to now. They will help you plan a strategy using the full force of the law to assist you in pursuing what is owed. Many attorneys will not charge you unless they are able to help collect what is owed. This offers even more reason for hiring a professional to help, particularly when the debt owed to you is substantial.




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