The past 12 months of the coronavirus pandemic have been challenging for businesses and individuals alike. Many people have found themselves with lower incomes and increasing debt, and companies are struggling to cope with changes in consumer behaviour and demand.
For businesses, having unpaid debt can be a real source of concern and an obstacle to cash flow meaning that companies have to dedicate time and money towards chasing debt. Here are a few ideas to help your business recover debts during this challenging time.
Communicate With Your Clients
Having an open dialogue is crucial when it comes to chasing debts. It would be best if you aimed to have your team contact them by telephone, as well as letter, to discuss their outstanding debt and how they can pay it back.
Where possible ensure that you assign one member of your credit control team to talk to each individual debtor. This way they can build a strong working relationship and increase the likelihood of debt being paid in good time.
Always be polite and professional when talking to your clients, and never cross the line into what could be considered harassing behaviour.
Be Flexible In Your Payment Options
It would be best if you approached your clients with compassion and flexibility. While recovering your debt is crucial to your business, you should remember that your clients are feeling the pinch of the pandemic too. Having flexibility in your repayment options can be invaluable to your debtors during this difficult time.
If you have a client with a previous excellent payment record, you should consider offering payment holidays or instalment plans to help them pay their debts. This will not only foster goodwill with your clients but also significantly improve the chances of their debt being paid.
Ideally, this should be your last resort. If you have been unable to make headway with your clients, it may be time to seek professional debt recovery help.
Using debt recovery solicitors is one of the best ways to chase and secure unpaid debt. Using an expert, professional debt recovery solicitor firm like Spencers Solicitors will give you the peace of mind that your money is in the best possible hands.
Using debt recovery solicitors can also help you claim back compensation from your debtor if they are a business, making it the best way to go for any company. In many cases, the mere involvement of a solicitor will push your debtor to pay their bill, meaning that you could save time and effort simply by having your solicitor send them one communication.
Negotiate With Your Debtor
If your debtor is struggling to pay and has issues with the bill, then try negotiating with them and discussing their problems. For individuals who are hostile, consider using a mediator. Having an impartial third party help to resolve a debt issue can be the cheapest and least stressful option for all involved.
Whatever course of action you choose to take, make sure that you adapt as much as possible and provide exceptional customer care. Do everything you can to avoid destroying your relationship with your debtor, but at the same time, work hard to ensure that you aren’t taken advantage of during the process. These are challenging times, but with a little compassion and effort, you should be able to get your debts paid and improve your firm’s cash flow.
The post The Best Ways Businesses Can Recover Unpaid Debts During COVID-19 appeared first on Worcestershire Business Central.