djamal-soft
السبت، 3 أكتوبر 2015
You should have a strategic plan to make your debtors pay. The starting point to avoid bad debts is to make sure that invoices are sent immediately after a transaction takes place. The dates, products details and costs of the items sold should be outlined. Ensure the details in your invoice are accurate for successful factoring debt recovery.
A statement should be prepared and send to the customer if he or she fails to pay on the date he or she promised to make the payments. The purpose of the document is to offer encouragement for the person to pay you. Also, you can send him or her letter outlining the services or good supplied and the time he or she was supposed to pay for them. Do not be rude in the letter.
Call the customer is he or she fails to get back to you. Let him or her know your plans if the money is not sent to you. Before ending the call, agree on when and how the debt will be repaid. After the conversation, write down the issues discussed and send a copy of this document to the client.
If the above means do not bear fruits, you should send the final letter reminding them of the debt and the actions to be taken if the money is not send to you promptly. It is tiresome to drag debtors to court to seek repayment but remember the law is on your side. However, seek legal counsel first before going to court.
Courts do handle these cases but only after it is clear that the debtor is not ready to give your money back. If this is not the case, you will not be handed your money back even if the litigation process works in your favor.
Rather than get frustrated by debtors who do not want to pay you, take preventive measures. Ensure you give credit to those you have proven to be credit worthy. Also, strict terms should be imposed when extending credit. In addition, have the maximum number you can give credit and give incentives to those who repay early.
Remember an invoice cannot be produced in court as evidence that a person owes you money because it is sent after the deal is closed. List down the customers you should not extend credit to.
Update your list periodically. Ensure this people pay immediately if they come back for more services or goods from you shop.
A statement should be prepared and send to the customer if he or she fails to pay on the date he or she promised to make the payments. The purpose of the document is to offer encouragement for the person to pay you. Also, you can send him or her letter outlining the services or good supplied and the time he or she was supposed to pay for them. Do not be rude in the letter.
Call the customer is he or she fails to get back to you. Let him or her know your plans if the money is not sent to you. Before ending the call, agree on when and how the debt will be repaid. After the conversation, write down the issues discussed and send a copy of this document to the client.
If the above means do not bear fruits, you should send the final letter reminding them of the debt and the actions to be taken if the money is not send to you promptly. It is tiresome to drag debtors to court to seek repayment but remember the law is on your side. However, seek legal counsel first before going to court.
Courts do handle these cases but only after it is clear that the debtor is not ready to give your money back. If this is not the case, you will not be handed your money back even if the litigation process works in your favor.
Rather than get frustrated by debtors who do not want to pay you, take preventive measures. Ensure you give credit to those you have proven to be credit worthy. Also, strict terms should be imposed when extending credit. In addition, have the maximum number you can give credit and give incentives to those who repay early.
Remember an invoice cannot be produced in court as evidence that a person owes you money because it is sent after the deal is closed. List down the customers you should not extend credit to.
Update your list periodically. Ensure this people pay immediately if they come back for more services or goods from you shop.
About the Author:
Connor G. Schiffman has 27 years of experience in commercial lending including factoring, asset based lending, and banking. Connor helps readers manuver through all the account receivable options providing practical and useful knowledge to better understand all your lending options. If you want to learn more about Working Capital In Business he recommends you check out www.receivablefactoring.net.
Category ›
ليست هناك تعليقات:
إرسال تعليق