Just hearing the words delinquent accounts make many business owners anxious. For most businesses, a delinquent account is the last thing they expect in their financials because dealing with it is not easy. Some people opt for commercial litigation as a remedy. In the end, they spend a lot of resources that could be used somewhere. In this post, we are going to show cheap and effective ways to handle deliquescent accounts in your business.
Make it easier to pay
You have to consider ways that will help to get the debt paid. That’s why you have to come up with solutions that make it easier for your customers to pay their due invoices comfortably and quickly. To make payments more convenient for them, give them options. Don’t stick to checks, but instead, allow online payments, credit cards or direct debits. This way, the customers can pay the due invoices faster since they have convenient methods to do so.
Don’t work against the customers
Always treat the debtor as a customer. Exercise patience and be ready to adjust to various situations that can help resolve the issue without causing distress to the customer. Sit down and talk as partners in the problem and agree on a payment plan. This way, the customer can comfortably pay, and he or she can never forget how you treated him or her.
Choose your language wisely
Keep in mind that words are powerful when contacting a customer about a delinquent account. Adopt strategy and caution when notifying customers about their late payments. By being polite, you can increase your chances of getting payments by up to 20%. Also, a short thank you and please can be very effective. Since some customers are notorious, use non-generic letters to remind them. Come up with letters that fit the situation. However, analyze the situation first before you reach out to them to avoid complications.
Be persistent and consistent when following up
The only way to make your customers aware of a late payment is by reminding them. Sometimes the customers forget or maybe they are trying to adjust the amount to conform to their cash flow needs. The only way to know what is happening is by reminding them. Some are stubborn and may need constant reminding to act. Don’t give up. Remind them again and again until you get the payment. If you are persistent and relentless, they will know that you are serious, and many of them won’t mess around.
Only consider suing as the last option
You might have to hold on contacting a commercial litigation lawyer until you exhaust all the avenues possible. This is because it is expensive. It may also worsen the situation and lead to fee disputes and a malpractice suit from the customer. There is a great source of information available on the Elliot S. Birnboim website.