Collecting Overdue Debt: a Course oF Action

“If you are a business owner, you will likely encounter overdue debt on a very routine basis. A huge number of customers – both individuals and other businesses – will inevitably forget, not bother, or refuse to pay their bills.

It’s easy enough to deal with the forgetful procrastinators with a couple of firmly worded overdue notices, but for those who still don’t pay, there is a time to turn things over to a debt collection agency.

When it becomes clear that a customer doesn’t intend to pay you out of their own free will, turning things over to another party probably isn’t a bad idea. For example, customers that flatly deny owing you money despite your records are very difficult to deal with without help.

A customer making repeated, groundless claims and complaints for the sole reason of getting out of a payment is another tell-tale sign that your business may have a problem on its hands. In a case like this, it is a good idea to send a final warning notice with an attempt to create a fair repayment plan. If no action is taken by the other party, it is then time to seek help from professional debt collectors.

Another obvious sign of trouble is when a delinquent debtor changes their address or telephone number without notifying you or providing forwarding information. When this happens you should immediately get assistance from an agency that is willing to track down the customer and act upon the debt.”