Chasing down unpaid commercial debts can feel like an uphill battle. Businesses owe you money, but getting them to pay isn’t always straightforward. Delays, disputes and stalling tactics are all too common in the commercial world.
Fortunately, there are proven strategies you can use to strengthen your position and improve your chances of recovering what’s owed. Here’s what you can do.
Make it easy to pay
The harder it is to pay, the longer it takes to get paid. As such, it helps to give debtors multiple payment options, from credit cards and electronic money transfer to digital wallets. This helps eliminate excuses and speeds up payments.
Offer payment flexibility when needed
Financial hiccups happen, and when they do, giving debtors the option of structured payment plans can help you recover your dues while preserving goodwill. It shows you’re willing to work with them rather than against them, which makes them more motivated to stick to the plan and pay their debts.
Humanize your reminders
Generic payment reminders often go ignored because they lack a personal touch. Personalize your follow-ups by referencing the debtor’s unique situation or payment history. Demonstrating you’re paying attention at an individual level also encourages quicker, more positive responses.
Use incentives to speed up payments
A small discount or reward for early payment can pay off. It encourages debtors to prioritize your debts while strengthening your business relations – everyone wins. You may also want to consider combining incentives with clear deadlines to create a sense of urgency and boost timely payments.
Get qualified legal assistance for collections
Commercial debt collection isn’t just about persistence; it’s about using the right tools at the right time. Seeking professional guidance can help you navigate the legal aspects of debt collection, avoid costly mistakes and maximize recovery.