Tips to Avoid Getting Short Changed By Debtors
Running a small business is risky business—with so many failing in their first few years, it’s easy to despair when bills are due are not being paid, facing yourself with the fear that your own precious company could go the same direction. Being able to rely on the money you are owed coming in on time, or at all, is unfortunately sometimes a luxury. That said, there are several good steps you can take to prevent your clients from taking advantage of you and keep your company going swiftly away from the red.
- Write It Down, or It Didn’t Happen. For contractual or debt-related situations, the person who documents most always come out on top. Make sure you keep a fully tracked record of all your interactions with your client or customer, in multiple mediums whenever possible. This is a precaution to protect your company from future legal troubles. While it may appear to be somewhat time consuming in the moment, taking a few extra minutes to sign off and document your business dealings will help you immensely in the long run.
- Check Your Sources. Getting a new consumer is generally an exciting time for a growing business, but before you commit to any type of long-term relationship or major financial investment in your new customer, it can pay to check out who they really are. Running a credit check, or a background check through another agency, can protect you from losing your hard work to someone who never had the means of payment to begin with, or did and never intended to give it up. If you are leery and this option is not available, a good option may be to require a significant deposit or the entire payment up front and in cash.
- Stay in Touch. Don’t lose your connections with your customers because of pure neglect! Be sure to always follow up with them regarding payments and invoices, because if you are late in notifying them about a payment, you will likewise be late in getting paid. You should be following up with your clients through traceable methods, such as email and certified mail, and through immediate connection types of communication, like by phone. If you have taken the appropriate steps to remind your clients about their swiftly approaching due dates for bills, with still no results, it may be time to call in the big dogs here at CMCS.
- Pass the Buck. When you have tried everything in your power to get a customer to pay up on what they owe you with limited or no success, it may be time to take matters out of your own hands and contact us at CMCS. Don’t wait for the end of the month or year to call in outside counsel, because the sooner you can get at least part of what you are due, the better.
If you have been trying to get your payments from a delinquent customer on their past due accounts, and cannot seem to get anywhere, call us at CMCS to come to your rescue. For more information, call us today at 800-223-6259.
