Having invoices go unpaid, services in dispute or customers owing money is an unfortunate reality all business owners face at some point. It is here that we must implement methods to 'deal with bad debt' as a business owner.
1. Understand who owes you money, i.e. categorise your debt
If you have multiple debtors from whom you are seeking payment; put them in a category. Start by assessing:
• the amount they owe,
• for how long that amount has been owing,
• what your relationship is with them (i.e. first time or repeat client)
• is that person or company undergoing business or personal discrepancies?
2. Set your first 'target'
If you have more than one outstanding invoice, it is easy to feel overwhelmed, thinking: where do I tart?
Given the above, you may have narrowed down one particular outstanding debtor. Make them your first point of call. This will alleviate the confusion of where to being.
3. Take Action
Time to take action. If you have not already, you can utilise either automatic or manual follow up systems for unpaid invoices where, as an example, you send reminders before due date and three days after due date, one week after, and so forth. If any effort to contact this client has been dismissed, you can also issue a letter a demand. Read more on writing a letter of demand here.
4. Implement preventative methods
Getting somewhere with your unpaid debt? Now is a time to look back and reflect on new ways to improve. Perhaps review your invoice terms and conditions to make sure they are as concise as possible; leaving little room for further issues. Read more about invoice conditions here.
5. Seek professional help
Of course, when stubborn debtors are either (a) making promises they are not keeping or (b) giving you the cold shoulder, it may be time to consider hiring a professional debt collection agency to assist you. Choose one with a firm but fair approach, one that upholds the face of your business while securing your lost payments for you.
Standard8 Advisory Debt Recovery & Collection, Brisbane, Gold Coast Queensland
You're set to receive the best with our team at Standard8 Advisory Debt Recovery. Guaranteed.
What makes us different?
✅ Proven recovery rates,
✅ No collection no fee guarantee,
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Please, to find out more, do not hesitate to contact our team on 1300 999 787.
