3 Hot Tips on Debt Recovery for Companies and Business Owners

3 Hot Tips on Debt Recovery for Companies and Business Owners

Hi, my name is Adam Stewart, Debt Collection Expert and owner of Debt Recoveries Australia.

When you want your debtors to pay, it can be tricky. There are many reasons why your debtors will not pay. I am sure you have heard just about every excuse that I have also heard over the years. Sometimes the reasons are true and legitimate. At other times, they just do not want to pay, for personal reasons. They may have the money they owe sitting in an account and are not paying it for their own reasons.

Whichever case it is, it is important to always be highly considerate and fair when you are dealing with debtors.

Here are three of my hot tips for companies and business owners, to increase your chances of getting payment from your debtors:

1. Stay calm.

First, stay calm and remain in control. Sometimes debtors are difficult and even unreasonable. Even when you feel they may be in the wrong, it is very important to control yourself.

Sometimes they will rebuke you and possibly get angry. Sometimes they feel that it is an insult that the business they owe the debt to has hired a debt collector.

Regardless of what the case may be, just know that it is not personal. Whatever their reason for not paying, try to stay peaceful and calm.

2. Be prepared.

It is important to stay calm and to come prepared. At times debtors will try to find a way to delay things or hold you off in some way or another. Be sure to take into account everything they could use to delay the payment and be prepared for it.

For example, when they say they cannot find an invoice, be sure to have one to hand them at the moment or email it to them as you are talking on the phone. If you are going to negotiate with a reduced lump sum, have a figure already in your mind or written down. If you are intending on legal action, have this information already prepared so you can brief your debtor of the repercussions of legal action.

3. Work with them, not against them.

We at Debt Recoveries Australia find that when we are extremely polite and friendly to the debtor, they will return the kindness. We find that if we try to work in with the debtor to find a solution, it often works much better than working against them with threats of legal action or penalties for non-payment.

Return positivity for negativity to the point where they feel like returning your positivity. Some will not do this. Stay positive nonetheless. This is important. Maintain a professional bearing, and try to be as understanding as possible.

Keep in mind that they may have complex issues for why they have not paid: they may be under some kind of financial strain; something in their business is not going right if they have not paid, even if they have the money and just have not been as quick as they could have when it comes to making payment.

There are many possible reasons a debt is not paid on time. It is important to be mindful of them all, and kind when discussing payment upon taking measures for collection.

Debt recoveries can be difficult and stressful. Never lose patience or give up hope and you will be on the right track to a successful recovery. If you are still having trouble, outsource to a debt collection professional. Call me now at Debt Recoveries Australia on 1300 799 511. You may also email me at email@debtrecoveries.com.au or Skype at debtrecoveries.

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