Are you in the business of lending money to the people in need but have always had a tough time collecting it back? The collection is not only embarrassing and infuriating for the money lenders but also for the debtor who finds several excuses to cheat their way out of making payments. It is the duty of the debt collection companies to stay vigilant about the excuses and take proper measures to make sure that the amount is not delayed too much.
In today’s posts, we will be discussing certain common excuses that debtors make, hoping their debt will somehow disappear and some tips that collection agents can follow to speed up the repayment:
They will either say that they haven’t received the invoice yet or the query related to the invoice has not been resolved from the money lenders end.
CHEQUE HAS BEEN SENT:
This is one of the oldest ways of delaying the payment process, keeping the collection agent hopeful that the payment has been made and it will arrive any day, any second.
This is slowly becoming a trend amongst the unwilling debtors who try to play safe by saying that since they are not employed at the moment, they do not have the money to make the payment.
SYSTEM NOT WORKING:
This is a plain excuse. A reputable organization will first make sure that all the payments are made before or at the right time. Should there be a problem in the system like crashing or overloading, arrangements for manual payment should be made with immediate effect.
THE AGREEMENT PERIOD CONFLICT:
It has been observed that many a time debtors would be n denial or outright state that they assumed that the period for payment was 90 instead of 60 or vice versa. It is essential that the agreement is written correctly and acknowledged by both parties.
Is your debtor stating one of the following excuses for not paying back the sum they owe you? Try the following tips to get your money back from late paying customers as quickly as possible:
Before leaping to the conclusion and directly seeking the help of a debt recovery agent or going for litigation, stick to the good old communication. Drop an email or a text (whichever mode they use frequently). If not reverted, call a few times. There is a substantial possibility that they might have forgotten about the payment and this communication might remind them of the money they owe to you. Make sure that whichever way you choose to communicate with your debtor, you need to be polite and courteous when stating the payment request. Your behavior has the power to make a forgetful customer make the payment quicker.
FORMULATE A CONTRACT WITH A PENALTY:
You have to remember that you are not a bank but helping someone in the time of dire need to get out of the financial strain that they are in, but that does not mean you can not penalize them. For every person that you have been lending money, make sure you have an appropriate contract in place that mentions explicitly what shall happen should the debtor fails to return the money on time. A penalty in the contract thus signed by the debtor will keep them aware of the consequences, and they would make sure that adequate arrangements are made to return the amount.
REWARDS CLIENTS THAT PAY EARLY:
Similar to penalizing those not making the payments at the right time, it would be advantageous to you if your clients pay before or one time and your reward them with an interest discount on the next payment. Not only will this keep your clients retained but also help with maintaining quicker payments, whereby the client’s accountant will keep your invoice always on the top in order to benefit from the reward.
HIRE A INVESTIGATION AND DEBT RECOVERY AGENT:
Are people taking advantage of your kind and compassionate behavior and not returning the amount they owe you? Is your debtor ignoring your calls, texts, and emails? Have you tried bailiff as last resort but there hasn’t been any positive result? Are the court proceeding wearing down your willpower and determination to get the money back? Having gone through all the trauma but in vain? Heed our suggestion and hire an investigation and debt recovery agent that will customize their investigation and debt collection per your concern. When looking for one such agency be it for B2B debt recovery or personal debt recovery, make sure that you always go for a reputed firm holding significant experience and those that make use of latest tools and technology in collecting your due amount from the debtor as quick as possible. Make sure your debt recovery agent provides not the only country bound debt recovery but international, face to face, tracing and private investigation, ensuring your money back by every possible legal means. Don’t let your debtor take your help for granted! Seek the advice of a debt collection agency today!