If you’re running a business providing services or selling products, there may come a time when invoices are not paid and accounts become overdue. This can play havoc with your finances, causing significant cash flow problems as well as a loss of income. In addition, the problems may also play on your mind for many weeks, months or even years, causing you great stress. If you want to recoup your lost money, then using London debt collection is ideal. However, there are a few options that you should consider before taking action.
Firstly, you must assess the circumstances of the debt. Is the unpaid invoice a huge sum, or could you make ends meet whilst you try to sort matters out? Is the debtor a long standing customer who has had no previous blips on their record, or is the unpaid account from a relatively new individual? Do you know customers personally, or is your relationship simply one of business? These are all important questions which you should ask yourself, and which may govern the approach that you take in trying to get any debt settled.
Before appointing a debt collector, you should try and get debt back yourself. Often, unless the collection has progressed to legal action, agencies will simply make telephone calls and send letters to debtors. You can easily do this yourself, and often simply making a phone call and asking about the unpaid debt can help you have payments settled. If you mention that you can take card payments over the phone, you may find that the debt is settled immediately.
If telephone calls and a number of emails have not worked, consider going to meet the debtor face to face at their home or office. A personal meeting can often be very rewarding. You don’t need to be aggressive, but by simply explaining in person that you need the account or invoice settled, you can indicate to debtors that you are actively chasing the debt and will not stop until your funds have been paid. If they cannot pay you back in one go, try to be understanding and discuss a possible payment plan. This step can help immensely in circumstances where you sense debtors are willing to pay but simply don’t have the funds immediately to hand.
If all attempts of debt collection fail via telephone and meetings, then you should inform debtors that you are intending on appointing a London debt collection service. Many people who have been holding off on paying will find the threat of collection agents, bailiffs and possible court action worrying enough to settle with you. Again, debtors may require a payment plan, but if you are confident that they are willing to pay off invoices and accounts, then there is no need to turn to collection companies.
There are times when all of these processes will not work, and you will need to turn to debt collectors for help. However, by trying to settle debt first without involving other people, you can give debtors every opportunity to amend their wrongs before you take action to the next level.