Debt recovery

Using Litigation to Recover Payments

Many businesses these days provide credit to customers. Unfortunately, all too often customers pay late or not at all, which can be very damaging for the cash flow of a business. Not only that, but it forces business owners to take on the adverse task of debt recovery. If you have outstanding customer debts that you haven’t been successful in recovering, then the following are some the steps involved when using litigation to effectively retrieve your money.

Note : Incorrect statement and this only relates to NSW jurisdiction.

Lodge a Statement of Claim

To start legal proceedings, you need to first lodge a Statement of Claim (or Complaint) against whoever owes you the money (defendant). You’ll need particulars such as: who owes the money, how much is owed, when and how the debt came about, and how long they have to pay you back. You can also get a lawyer to prepare this document on your behalf, which is highly recommended. Some debt collection agencies will have their own onsite law firm that can provide this service.

Click Here To Read More

Tracking Down Old Clients for Payment

The economic climate of the last few years has been difficult for many to handle. As a result, many individuals and businesses have accumulated substantial debts that they cannot afford to pay off. If you have debts owed to you from old clients that are trying to stay under the radar, then it’s time to track them down and get them to pay up once and for all. Not sure how to go about it? The following are some tips to help you out.

Protect Yourself From the Start

The very first thing you need to do is avoid getting into this situation in the first place. At the beginning of every business relationship, obtain as much information as possible about your clients. While it may seem awkward to ask for too many personal details, the information will be crucial if you find yourself needing to track them down for payment later. The key to successful debt recovery is to protect yourself, and you can do just that by finding out the full names, phone numbers, mailing addresses, and business contacts of all your clients.

Click Here To Read More

Dealing with Customers that Refuse to Pay

If the current economic conditions weren’t tough enough for your business already, add to that the fact that you may have outstanding accounts from customers who are also feeling the crunch. While you may be able to feel their pain, the impact of their outstanding debts could be devastating for your business.

That’s why it’s important that you have a debt recovery plan that is effective and yet keeps the relationship with your customers civil. At some point you’ll find yourself in the position of chasing payments, so here are some tips for doing so efficiently and with the least amount of stress.

Click Here To Read More

Dealing with Difficult Clients

To be successful in today’s business world, you must have quality customer service skills that differentiate you from your rivals. Unfortunately, even when you do your best to serve them well, once in awhile you will still get a difficult customer — one that is picky, know-it-all, egocentric, angry and so forth. While it can be frustrating to deal with people like this, the success of your business depends on your ability to do so. Take a breath, relax and follow some of these tips:

Adjust your mindset

Once you discover that you’re in a situation where a client is unhappy, the first thing you need to do is put yourself into a customer service mindset. Basically, set aside any personal feelings you have about the situation and remember to not take criticism personally. Once your emotions are set aside, you can concentrate on listening in a non-judgemental or defensive way and focus on coming up with a solution. Even if the customer is making unfair disparaging remarks, it’s important that you stay calm rather than take the bait.

Click Here To Read More

Avoiding Legal Action Against Debtors

Being able to provide customers with credit can be quite advantageous for many businesses, as more sales may be attracted as a result of offering such a convenience. However, when your customers forget or refuse to pay you what you’re owed, then the bad debt piling up in your accounts receivable can become a major financial burden. To avoid this becoming an issue, you will need to undertake the unpleasant task of recovering the debts.

Since most people don’t enjoy confronting customers about their unpaid bills, there are plenty of ways you can politely and reasonably push the customer to pay up. If you want to keep things amicable without involving the legal system, have a look at some of the following debt recovery solutions.

Contact the customer

Either via email or a phone call, make the initial contact with your non-paying customer to bring attention to the error. The first contact should allow for a mistake to have been made, as in most cases an error may simply be the result of a stolen identity, credit card fraud or less-than-perfect accounting. By avoiding aggression and threats of legal action at this point, you will maintain your relationship and encourage the customer to pay their bill as quickly as possible out of respect to you.

Click Here To Read More