There is nothing fun about running behind clients to collect money. But unfortunately, this is one aspect of running a small business. For the most part, clients will respect your due dates and pay invoices on time. However, this isn’t always the case. And on occasion, you may deal with clients who blatantly ignore your invoice.
Despite the unprofessionalism behavior of some clients, there is a wrong and a right way to handle the situation. Angry voicemails and threatening letters aren’t going to get your invoices paid. And sometimes – being nice get’s you nowhere. What are your options? Do you move on and accept ignored invoices? This is an option, but it probably depends on how much you’re losing.
It may be easy to walk away from a small job, but for larger jobs where you’ve devoted a lot of your time and energy, using Cavalry Portfolio Services for business debt recovery might be in your best interest. Some clients may view correspondences from you as an empty threat – especially if you’re a small company. This is where a professional debt recovery company comes in handy. So, what are the benefits?
1. Saves time
It takes time to collect funds from a deadbeat client. And if you are busy running a company, collection attempts can fall by the wayside. As a matter of fact, deadbeat clients probably bet on the fact that you will lose interest and give up – if they can just hold out until you are fed up.
A debt recovery company specializes in this type of work. They have the manpower and the relentlessness to stay on top of your clients, thus helping to recover what’s owed to you.
2. Demonstrates the seriousness of the issue
A client may simply toss your payment notifications to the side. But when a debt collection letter arrives in the mail, they take notice. Most non-paying clients do not want a legal battle. They know that the odds aren’t on their side, and it’s much easier to pay the debt and avoid a lawsuit.
If your second or third communication attempts do not generate a payment, use a professional service. Even if you only recover a percentage of what’s owe, something is better than nothing.
Don’t think that you can’t afford to work with a debt recovery company. There is a fee for this service, but there are different ways to handle this. You can pay the agency a flat fee to take over collection attempts, or pay the agency a percentage of the debt recovered. This is one of the most practical, affordable solutions.
You have rights, and being a small business owner doesn’t give clients the license to walk all over you. Running a business is challenging enough, and you shouldn’t have to deal with clients who don’t respect your time or work. Why fight a losing battle when you can solicit help from professionals who know how to handle these types of clients.
This post was submitted by a guest author. If you would like to submit a guest post for Eyes on the Dollar, please contact me.
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