If your customers are struggling to pay what they owe you, you might have to involve the services of a debt collection company. Debt collection services don’t always have to spell the end of your relationship with your customer either, so you should always ensure that you employ the services of a company who are going to retrieve your payment without damaging that relationship.
Late payments are nothing unusual these days. Whether it’s companies simply stretching their payment terms out of habit, or doing so because of problems with their own cash flow, it seems that the majority of companies will think nothing of paying an invoice late, in particular large companies. Nevertheless, this has serious consequences on those waiting for the payment, so you shouldn’t hesitate about involving a credit management company to help you recover the debt.
You may find that a call or letter of your own will prompt many of your customers into making their payment, but if not, an official letter from a credit management company will. A letter is always the first point of call and is often just enough to recover payment without affecting your business relationship.
However, if payment still isn’t forthcoming, then the next step would be to proceed with legal action, which may involve court proceedings. This may well be the case if the customer in question is facing insolvency or bankruptcy and simply cannot pay their debt any other way.