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How to Collect The Money Your Business is Owed

By Business Desk

Wednesday, September 29, 2021.

One of the toughest things about running your small business is often getting the clients to pay up. If this is something you’re having to deal with and you want to know what to do about it, read on for some top tips on collecting the money your business is owed more effectively.

Stay calm

The most important thing you need to do when you’re trying to get the money you are owed is to stay calm. It’s easy, and often understandable, to get angry and frustrated, but it won’t help you get the money you’re owed. If you blow up at a non-paying client they are more likely to use your attitude as a reason not to pay than they are to pay up, so take a deep breath and do your best to approach the client as calmly, clearly, and positively as possible because that is what is more likely to get you your money.

Send a reminder

Sometimes, clients have not paid up not because they are avoiding doing so, but simply because it has slipped their minds. So, one strategy that can work really well is to send a reminder as a follow-up to the initial invoice. This may just jog their memories enough to pay up, and if you state the fact that the bill is overdue on the reminder, that is more likely to nudge them into action. 

Use software

If you have a lot of money to collect, then you could think about using debt collection software like this skip tracing collections package which will help you to more easily locate the people who owe you money and make sure that the whole process of recovering debt for your business is as streamlined as possible.

Get to know your rights

If you are a small business that has never encountered non-paying clients before, then you might not know what you can and cannot do to recover the money you are owed or what the legal obligations of the other party are. If that is the case, it’s a really good idea to research your rights, or even better speak to a business attorney who will be able to tell you exactly what can and cannot be done so you can look for an effective solution while also staying firmly on the right side of the law.

Log everything

If you want to be able to prove you are owed the money and that you have done everything you can to try and collect it, and you also want to show the non-payer that you are taking it seriously, log everything from the first invoice to taking notes of all the calls you’re made and emails you’ve sent. The paper trail may be enough to scare them into paying, and if not, well at least you’ll have the paperwork ready if you want to pursue them through the courts.

Getting clients to pay up when they don’t want to can be tricky, but if you do all of the above, you should seek a more satisfying resolution more quickly.

How to Collect The Money Your Business is Owed

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