If you own a business and want to get debt recovery from your customers who don’t have good credit control, there are a few things you may want to consider beforehand. These are a few ways you can get debt recovery while still keeping your business in the green.
For customers with bad credit or overdue payments, you may want to send them friendly reminders that their payments are due. A lot of people will be “pressured” by this and may end up filling their debt soon enough.
Keeping credit control is essential for the livelihood of businesses.
Send an overdue payment reminder next, and slowly build the pressure up from there. Contact your customer with a final notice, a legally binding letter or notice which demands the due payment is a way you can recover debt.
Some ways you can avoid bad debt customers is releasing the goods after the payment has been cleared and wait for the deposit slip before shipping. A great way of keeping payments in check is offering small discounts for early payments, which allows you to receive payments and acts as an incentive for people to pay early.
You can also do a background check on people if your product asks for it and sell to customers who have a good history of credit.