In order for your business to stay functional, you will need to establish a reliable cash flow. Unfortunately, in this effort, there are always some unforeseen circumstances like debtors who are late or unwilling to pay what they owe you. Needless to say, these kinds of situations can be very unpleasant for both parties. Seeing how the future of your business depends on your behavior, under such circumstances, it is vital that you take the most professional approach possible.
The first thing you need to think about is the motivation behind their late/absent payment. In most cases, their payment won’t arrive since they are unable to make it. However, sometimes the situation will be much different. In the modern world, a lot of people are way over their head in debts and credits. Because of this, the reason behind this problem is that you are not high enough on their creditor priority list. Finally, some people just outright refuse to pay since they are not satisfied with the goods or service you have provided or because they believe they can get away with it. Sadly, no matter what their motivation is, you need your money back just the same. The only thing this changes is the method of your approach.
Having Someone Else Collect
Another thing that needs to be taken into consideration is the fact that a lot of business owners hate being put in a situation like this. Even though it’s their money they are asking for, they can’t shrug off the feeling of strong-arming someone. Apart from being placed in an embarrassing situation, they also have no knowledge of methods of legal means through which they can ask for their money. Because of this, it might be for the best to just contact a professional to deal with this debt recovery. While this is a safe and reliable way of getting your money back, it has another advantage most people forget about. It places a third party between you and the client, which leaves your relationship at a safe distance from this whole ordeal.
In the end, you can always try and collect the money on your own, but this is usually not easy. For starters, you might want to contact your debtor and politely remind them of the money they owe you. First, you might want to choose the way in which you are going to do it. You can use a phone call or meet them in person. Of course, there is always an option of sending a message, a letter or an email, but this can be less effective. The important thing here is to stay polite and professional while still sticking to the point. Going in depth to explain that you need the money during this conversation is unwise since it can make you seem less serious and, after all, it’s none of their business.
Regardless of what method you choose to use, remember one thing: most people who avoid paying to do so because they’re unable to. This means that, at some point in the future, you might still have a business relationship so it’s wise to end this on good terms. Only one thing is out of a question: forgiving someone for the money they clearly owe you. After all, your supplier and your employees both invested the resources and the effort in hopes of you paying them back. This means that the aforementioned debt problem doesn’t start with your debtor and it doesn’t end with you.