At times, requesting invoice payments is not an easy task if the debtors are reluctant to pay or have no ability to pay the liabilities. However loyal your customers are, you should always remember that you are running a business, so if you sympathize with them, you may end up closing your business. For that reason, this article will highlight some of the debt recovery processes that you should use to remind your clients about their outstanding debts.
The first thing that you need to do is to call and send a mail to your customers to tell them about their late invoice payments. It could be that your customer used an incorrect bank account in paying the mortgage or they could be dealing with other issues which made them forget about your debt.If your client is in such situation, make sure you include your bank and contact details as well as your preferred mode of payment. The minute you hand them this information, it is to your advantage since the debtor will not end up in this situation again.
On the other hand, if this debt recovery procedure fails and the debtor has not called you or paid the mortgage, consider contacting them again either by phone, email or mail. Nonetheless, if the above debt processes fail, you ought to give them a final extension period to resettle the debt.At this juncture, visit your debtor and warn them about the invoice.At times, this debt collection procedure can assist in strengthening your business relationship with your customer.
If all the above attempts fail, consider sending them a debt recovery letter. Conversely, this formal letter of request should act as a last resort in demanding payments since it can damage your relationship with your customer.
Further to that, you should think about involving a debt recovery attorney if the customer defaults to settle the money he or she owes you even after trying to reach out on several occasions.A liability collection attorney will try to retrieve your money by filing a claim against the debtor in court. As soon as the debt recovery attorney initiates the legal proceedings; the next thing you have to do is to wait upon the arbiter to make a decision about the matter. In the case where the case will be resolved in your favor, the defaulter will be accountable for all the costs you incurred in the debt collection process and will also have to pay the debt.
In conclusion, the debt recovery process varies from one state to another. Therefore, it is of paramount importance to involve a debt lawyer in debt recovery process since they can retrieve back your money quickly.This will not only ensure that you have recovered your money, but that will help you know how the debt recovery process works.