Posted on: 28 July 2015
Many business owners do not know when it is time to contact debt collectors in order to recover money that is owed to them. As a result, they end up writing off many debts and this hurts their businesses. You can avoid this from happening to you by acting when you begin noticing or receiving certain behaviors or excuses from debtors. This article discusses some of those excuses or behaviors:
"Wait for My Customer to Pay Me"
This excuse should set off warning bells in your mind because it shows you that the customer has no time limit as to when he or she will pay you. Such a customer must be having cash flow problems so the sooner you involve debt collectors the better for your chances of recovering what is owed to you.
The Debtor Stops Taking or Returning Your Calls
When some debtors find it difficult to pay their creditors, they stop taking calls from them and they do not return any missed calls. Technology like caller ID functions on phones makes it easy to identify that it is their creditor calling so it is easy for them to know which calls they should not pick. If your debtors begin doing this, refer their issue to debt collectors so that your money is recovered.
If you send an invoice and the mailing company returns it to you, call in debt collectors. This is because your debtor may have left without leaving a forwarding address. It will therefore be hard for you to trace that individual in order to collect what is owed to you. The debt collectors have the skills and the time to trace for such debtors by following them on social media, for example.
When the Debtor Loses a Major Client
If your debtor has been falling behind in making payments to you then you learn that he or she has lost a major client, chances are high that his or her financial position is not likely to improve very soon. If you do not act quickly then you are likely to have a bad debt on your books. Debt collectors can help you avoid that eventuality.
Every business owner is understandably reluctant to call in debt collectors to enforce payment due to the need to avoid hurting their relationship with customers. However, a time comes when you must take that step in order to protect your business from getting into financial difficulties. The signs above are good indicators of when you should take action so do not ignore them.
To learn more, contact a company such as National Collections with any questions or concerns you have.Share