Customers will sometimes ask for payment in credit or with cheques, and the bottom line is that they will be owing you some money. While it is a good idea to let them have a way to pay back later, it is not so practical in reality. More often than not, people will forget to pay back their debts, and in most cases it could turn ugly, as you will be forced to take drastic measures. However, there are finer approaches you can try first.
Remind Your Customers About Not Paying on Time
Even though most customers know what happens when you overstep your credit card bills, they should not take it lightly if they owe money to your business as well. Nevertheless, some will have to be reminded about the consequences and what kind of legal action you can take in order to get your money. However, be sure to do it in a polite manner, or your customers might get the wrong idea. By all means, take your time, and explain over and over so that you are both on clear terms of what the next step is going to be.
Send out Reminders of the Debt and That It Is Time to Pay Back
Do not expect people to remember paying back their debts, as they will often tend to forget, for obvious reasons. However, make sure to send out reminding letters, and if need arises to even send letters of demand, but it should be used only if things get serious. As intimidating as it sounds, these letters mostly consist of a list of actions that are going to be taken if they do not settle their debt. Nevertheless, remind your customers about their duties and that after a while you will be rightfully enticed to take legal action.
Visit in Person to Collect the Debt
After some time, and if you notice that customers are refusing to pay, you should visit them in person to try and reason with them about settling their debt. Be sure not to come down as too intimidating, as it could ruin your business’ image, and you might have to deal with negative feedback. Moreover, be sure to settle with a compromise as well, because there might be a good reason why your money is late. Though, always do a background check, to ensure that your customers are not trying to make a fool out of you.
Hire Someone to Do It for You
When too much time has passed and the debt has still not been paid, then it is time to think about hiring an agency to help you out. The AMPAC debt collection agency will provide you with great advice on what your next step should be, and what to do if things get out of hand. Be wary that you do not want to seem like a bloodthirsty business, and that your goal is to establish a connection with your customers, to make future business plausible. On the other hand, this will be a good opportunity to set boundaries with customers who do not respect paying back debts.
At the end of the day, you are not a ruthless mobster who will collect the money no matter what. If possible, sit down and talk it over with your customer to come up with a compromise that will work for both side. Though, you have to preserve your business’ image, and your customers need to see that they can do business with you, even if they have to negotiate their debts a bit.