5 Ways to Make Your Small Business Debt Collection Process Successful
We all know time is money.
Whether it’s the hours you’re putting in at work, effort you’re putting into a business, or the number of days late you are on paying insurance, it all comes back to money. Money doesn’t equal happiness, but it sure does help.
Especially as a small business owner, time and money are both very precious things to you. It can hurt your growth if people are paying off their debts in time.
Below are 5 ways to make small business debt collection processes easier. Make sure you keep reading to take a burden off your back.
1. Be Persistent, Not Annoying
Sending out reminders when collecting debts is no problem. In fact, it is suggested. Many times, people just forget they have a bill due because life can get busy.
The last thing people want is constant harassment with letters, calls, and emails. If you do all of this, some people may not pay the bill for a few days out of spite.
One of the best ways to avoid this is creating a strict schedule of reminders for each customer who is late on a bill. Trust us, we know getting the money you’re owed is nerve-wracking. Stay calm.
2. Settle for Less
While this may seem like waving the white flag of defeat to a small business, it’s better to get a little than nothing at all.
One of the main reasons people don’t pay off their debt is because they just can’t afford it. It’s probably causing them sleeping problems, and they’ll do anything just to find some sort of relief.
If they can’t pay all of it, offer to take a smaller portion for now. You can even set up a payment plan.
3. Look for a Collection Agency
Spending all of your time trying to collect a debt will take your time away from other important business matters. Hire a collection agency to free more of your time.
Not only will a collection agency help with your time, they know all rules and regulations when collecting debt. This will keep you out of trouble.
4. Create Documentation
If collecting debts becomes such a large issue that you go to court, having documentation will work in your favor.
Every single time you send a letter or speak with a customer, document the communication. Save all emails, and keep track of home visits.
It can be stressful to create documents, but there’s tons of online resources for creating document templates.
5. Stay Calm
One thing to keep in mind when owning any sort of business or property is understanding payments will come late.
When collecting debts, stay calm and handle it professionally. Customers are more likely to comply if you approach them respectfully.
Tips for Small Business Debt Collection
Owning a business can be a wonderful yet stressful thing. One of the biggest tasks is going to be small business debt collection.
If you’re a small business experiencing unpaid debt from customers, make sure to read the 5 tips above. No matter what, remain calm and handle things with a professional attitude.
If you are going through debt collection, know your rights and contact us with questions.