Whether you are a business owner, accounts receivable manager or credit controller tasked with pursuing unpaid debt, it can be a nuanced and challenging endeavor.
Those customers and clients who will go to great lengths to avoid paying.
Customers and clients who juggle numerous payments due simultaneously and therefore pay sporadically.
Customers and clients who are prevented from paying on time due to financial difficulties, but who pay in a timely manner otherwise.
There is hope of recovery in the latter two categories of non-paying clients. After all, they have a history of making full payments, and therefore they may be convinced to make a full or partial payment. However, the first category of customers - those who will do everything within their power to evade paying - demand fast and determined action. Invoices and demands for payment should be sent promptly, frequently and with regularity. Once these customers are identified, it would be wise to consider bringing a third-party debt collection company into play.
Inform the debtor that there is a debt that requires payment.
Give the debtor the opportunity to respond, should they wish to deny the debt.
Give the debtor the opportunity to discuss alternative resolution with regards to the debt, including payment plans.
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