6 Tips for Debt Settlement before you go Legal
Hey, Adam Stewart here. I know debt collection can be an uncomfortable process, even for large businesses. These tips are designed to help you understand the options you have for debt collection, before you go down the legal path.
- It all starts with your account handling processes. Whether you are following up accounts, accurate and detailed records will help you quickly identify and deal with delinquent accounts. Your customers should know exactly why and how much is owed. Provide itemized invoices that include a specific due date for payment.
- Do not ignore unpaid invoices. Don’t wait to take action on a debt. The longer a debt remains unpaid the less likely you are to collect.
- Call BEFORE payment is overdue – Be proactive.Don’t wait until after your debtor has breached their promise to pay. Call your debtors a few days prior to the due date and confirm they have received your invoice or letter of demand and that they have your bank details.
- Be professional and courteous in your collection efforts. It is illegal to threaten, harass or intimidate customers who are unable to make payment. Never threaten an action you are not willing or legally allowed to make.
- Consider accepting an installment plan. Some customers simply do not have the funds to make a one-time payment. Try working with the customer to determine what they can afford or if installment payments are feasible. Be sure to document any agreement you make in writing and have the customer sign a copy to acknowledge they intend to make payments.
- Get a free consultation before you go legal. Talk to DRA’s legal partner, ADC Legal. If the amount owed is large enough to warrant further action, you may need to consider legal options. ADC Legal Litigation Lawyers can provide quick and useful legal advice and help you decide on the best course of action. Go towww.adclegal.com.au to learn more or call 1300 799 820.
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