There are basically three ways you can collect a debt from your customers. You can work that overdue invoice internally, hire a collection agency or go to court. We’ll briefly go over these options.
Work it internally.
You have probably already done this; had your staff try to collect on payments owed to your business. You probably sent statements and maybe even made a few calls. The key to working accounts internally is to make sure you invoice on time, follow up on time and if you need to call that customer, treat them with respect. Find a way to understand their circumstances and work out a resolution.
Hire a collection agency.
When your internal collection efforts fail, it’s time to find a reputable collection agency. Using the right collection agency will remove you from any awkward confrontations with customers, give you that added expertise in collections and allow you and your staff to spend more time on profitable customers. To find the right fit for your business, make sure collection agency understand your business and has a reputable standing in the industry as well as their community.
Go to court.
Taking a customer to court is another option but not one we recommend. It can cost you a fair amount of money to retain an attorney to represent you, it will take an untold amount of you time away from your business and in the end, you may be in the same position you started in, with nothing more than a judgment from the court.
Need more advice on collecting your money? Contact our team today!