Sooner or later, your business is bound to run into a client or customer that won’t pay you the money they owe your business. Don’t fret! This is a normal occurence in small business. Even if you have done credit checks and called references, sometimes a client will just leave you high and dry. Luckily, in this age of legal action, there are a number of things you can do to collect on your debts.
- Talk to your client. Find out why they haven’t been paying you the money they owe you. If it is for legitimate financial difficulties, perhaps you can work out a payment plan with the client. If you do, be sure it is legally binding.
- Don’t make it personal. Yes it’s frustrating not get your money on time but there is no sense in overreacting. Be professional and never leave multiple messages in a day or harass the debtor.
- Pursue your options in small claims court. This is a good option if there is no hope of you getting your money without a court order. Filing fees are modest and you can represent yourself.
- Consider mediation or arbitration if you are looking for quicker results. Going through the justice system can take some time so consider hiring a third-party to sit down with you and the debtor and come up with a settlement.
- As a last resort, call a collection agency. The collection agency will get a portion of the money owed to you so if you’re looking for the full amount this may not be your best option.
For your business needs, contact the Winflow Financial Group at 1.800.956.6897.