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Important Ways to Stay on Top of Your Debt

By Melvin Subscribe to RSS | June 21st 2012 | Views:
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You were specific in explaining the deadline and you thought they were trustworthy. You were meticulous and they seemed solvent. Therefore now that you have been left to dry and they have your money, you are at a loss on what to do. The worthiness of the customer and the potential of the investment push you to make a polite call, consider what problem they could be facing and eventually you prolong the deadline. This is where most businesses make the mistake when it comes to debt collection.

Do not be deceived, debt and good wine are not birds of the same feather, they do not flock together. Neither does debt get better with time. Whether it is a friend, a relative, a business partner or a good customer the best thing to do for your business is resort to debt collection. Debtors will always be there, so the earlier you learn how to deal with them, the better for your business.

Making the call

When you place a call, be assertive and do not attempt to find out their side of the story. Ask calmly yet firmly when you should expect the payment and in what mode of payment. Ensure you do not talk to a secretary or an assistant. Have a debt conversation with a decision maker to get a prompt and accurate response. Ask leading questions to get vital information and keep control of conversation.

Get the debtor to make a commitment and inform them you expect a payment made on time. Do not involve any other topic in the conversation, as it will digress from the importance of the matter. Most importantly, do not rely on your memory but take notes and keep them well. You will need them for follow up calls and if you end up resorting to litigation.

Proper Documentation

'Prevention is better than cure' should be the motto when it comes to new clients. Always get the proper references and contact information. Getting the wrong contacts means, you will have a difficult time tracing the debtor increasing their chances of getting away with your money. Do not go soft, simply because you know the individual on a personal level or have been referred from a person your trust. Never mix business with friendship. Get proper and recent references. Ensure the invoices you send to any customer before or after default of payment are detailed and easy to understand. An additional handwritten note emphasizes the urgency of the matter.

Debt collection

Set a date of payment and terms of payment with the debtor. If all the above fails, then resort to debt collection. Get debt recovery services from collection agencies and be keen on their terms of collection. You can obtain proper debt collection by opting for legal services. Consulting a legal firm is probably one of the better methods of debt collection as they ensure speedy recovery of your debt regardless of the debtor being an individual or a major corporation. Some cases do not end up in court and can be settled amicably through mediation and arbitration.

Every business manager has to learn the art of debt collection. Once the skill is learnt you can collect your debts, keep your customers, and prosper your business without it getting ugly.

Melvin - About Author:
Finding Debt recovery Melbourne companies is a much bigger issue that most would like to imagine. Finding the right debt collection agency in Melbourne with experienced professionals is the best way to resolve your finances and get back on track with your life.

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