How do I collect business debts?

Getting paid on time is crucial to keeping your business running. Yet, poor payers are one of the most frequent issues small business owners have to deal with.

Often people think they can get away with delaying payment because of the personal relationship they have with you. Or, they figure you do not have the time or means to come after them as a bigger company would.

So what can you do when someone owes you money?

The first step is to remind them

There are several ways to do this, and calling up and speaking to someone may get a faster result than merely sending automated reminders. Many people feel embarrassed about not paying on time and will quickly move to settle the tab to save face when dealing with someone in person.

Understand if they can pay or not

There may be occasions where getting the total amount of money due is impossible. For instance, if the company is about to declare bankruptcy. Sometimes it is in your interests to accept a smaller amount rather than risk getting nothing.

Don’t overstep the mark

If you feel upset about the person who owes money ignoring you, you need to keep your emotions in check. Threatening or harassing them will only make collection harder as you may breach their legal rights. Don’t let them convince a court that you are the villain in the picture. Record all attempts to get payment. This proof will be vital if you end up in court.

There are legal options available to reclaim the money you are owed, and getting help to understand the precise order of steps to take makes a successful result more likely.