Every business will face this eventually. You’ve provided your product or service in good faith and then the customer doesn’t pay. Now it’s up to you to recover the outstanding monies.
To do so you have three options:
- You can do it yourself which is time consuming and takes you away from the activities that make you money. But if the debt is small it is often the best option.
- You can engage a debt collection agency who will take a percentage of the monies collected. However, if the matter escalates it is unlikely they will be able to represent you in Court.
- You engage your lawyer. This makes most sense for more significant debts as the lawyer can structure the collection process to escalate quickly should the customer not pay. And should it escalate they can represent you in court.
Having said that, it is also worth reviewing how effective your entire debtor management system is, because often businesses which experience higher than average debtor delinquency has gaps in the debtor management processes.
Our business law experts can help you with both collecting outstanding debts and implementing better debtor management systems to increase the effectiveness of your debtor collections.
To find out more get in touch with us and talk with one of our business law experts.