One of the biggest frustrations as a business owner is having clients who fail to make prompt payments. It can harm your cash flow, making it a challenge to meet your financial obligations on time. If left unresolved, it could even sink your business.
While you have every right to take action to get your money, you have to be very careful about how you do it. Here are some things to consider when someone owes you money:
1. A personal approach may help
A debtor might not pay attention to calls from your administrative assistant or an automated email, but they might find the money if you call. Sometimes it just takes a different approach to get people to pay.
2. Make sure you understand your limits
You can’t just ring nonstop or at all hours of the day. Otherwise, a court might view your approach as harassment, making it harder than ever to get the overdue money.
You also need to avoid anything that they could claim is threatening behavior. So don’t knock on their door when you are taking your Rottweilers out for a walk, however docile they are and however convenient it is for you to stop by while you are passing.
3. Decide if it is better to get something rather than nothing
If your debtor files for bankruptcy, you might not receive anything at all. Sometimes offering a deal for a reduced payment is your best option. Getting legal help to understand the full range of options at your disposal increases the chance you succeed when your business has problems with a debtor.