Navigating the delicate process of communicating with debtors and those that owe you many is a critical aspect of managing a business’s financial health, and a challenge for many business owners.
Here, the commercial debt recovery experts at Monetaria delve into the strategies and best practices to handle debt recovery effectively. From maintaining professionalism and legal compliance to exploring negotiation tactics, this comprehensive guide equips entrepreneurs with the knowledge to successfully handle debt communication and ensures positive outcomes for both parties involved.
3 Ways For Business Owners to Communicate With Debtors
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Write professional and cordial emails, and make courtesy calls and check-ins:
Sometimes, the classic ways of communicating is the most effective way to contact a debtor. Making calls and sending emails shows a proactive attempt on your part to find a solution to the current impasse both parties find themselves in. Keeping it professional, solution oriented, understanding, and open minded while avoiding blame shows a willingness to work with those that are withholding payment for your product or services, and maximizes your chances of recovering your money. Remember to keep a record of all your attempts to communicate with your debtor in case it is needed for legal proceedings down the road.
READ MORE: How To Recover Unpaid Invoices: Commercial Debt Collection FAQ’s
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Be careful to avoid harassment
Debt collection is a delicate dance, where business owners need to be agreeable with people that owe them money, to ensure they maintain open communication and the best chance to recover what they’re owed.
To do that, while business debt is not covered by The Fair Debt Collection Practices Act (FDCPA) that mandates how creditors connect with debtors, following those guidelines and being careful to avoid harassment or over-communication may go a long way to creating a positive relationship with the delinquent client. Calling and emailing a reasonable amount of times at reasonable hours in one smart move, while not putting them on blast on social media or in public is another.
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Explore alternative legal and professional options
When initial in-house and personal attempts to reach out prove unsuccessful, leveraging the potential of legal action can often serve as a catalyst for communication and hasten a resolution. Collaborating with a debt collection agency or a debt recovery lawyer—or opting for a combined approach, which Monetaria offers—can support your collection efforts, utilizing legal avenues to compel a resolution. Debt collection agencies and attorneys are skilled at establishing effective communication with debtors, navigating negotiations for settlements, creating payment plans, and exploring legal remedies as necessary.
READ MORE: How to Send Someone to Collections
We’re happy you found this article informative! Go back to our blog page to find more tips, tricks and guidance on collections, to ensure your business gets paid.
If you have unpaid debts that need to be recovered, commercial debt collection may be a good option for your business. A commercial debt collection agency can help you with the process of recovering past-due accounts and provide guidance on best practices for managing accounts receivable.
Led by a team of experienced commercial debt collection attorneys, Monetaria Group has lawyers for debt collection and helped hundreds of businesses recover and collect their outstanding debts and payments. Schedule a FREE consultation with our expert team to see how we can help you recover your money today!