3 Steps to Successfully Manage and Collect on Small Business Debt

There is hardly anything more frustrating than dealing with a non-paying or late-paying client or customer. At some point, almost every business will encounter a situation where a someone refuses to pay, delays payment, or cannot afford to pay the full amount for services availed or products purchased.

How you respond will impact your chances of collecting on a debt and it can also affect how your clients perceive your brand. If your client refuses to pay or does not pay on time, you will want to ensure you have a consistent customer service driven approach to collecting your B2B past-due debt.

Follow these tips to get your late-paying and non-paying clients to pay from B2B debt collection experts, Tavelli Co.

Never Lose Your Cool

Learn to deal with disrespectful clients. When you make a collection call, the other party may deliberately say something to infuriate you. Instead of retaliating, keep your cool, take a deep breath, and stay calm. The angrier you get, the less likely that you will collect on the debt; the debtor may feel your anger and might take it personally. You only have control of how you handle the situation, so always talk professionally and try to put yourself in your client’s shoes. They are most likely not upset at you but at their situation, so don’t take it personally.

Be respectful and give your client ample time to tell their side of the story. Assure your client that you want to work with them to resolve their debt based on their financial circumstances to best find a solution that works for both parties.

Standardize Internal Collection Processes

Ensure you have a standardized account escalation process. This will help your people know what to do next if your client is not willing, or able to resolve their debt. Each time you send correspondence to your non-paying client your messaging should become firmer.

Each business has a unique escalation process. Consult with an expert to ensure your escalation process fits your goals. For example, your process may start with a friendly late payment reminder, then move to a past due notice, and finally a notice informing your client you intend to assign them to your collection agency. You should only tell your non-paying client’s you are going to assign them to your collection agency if you actually intend to do so, or it could be interpreted as an idle threat. Make sure to document all communication with the other party. This will help your collection agency enforce your debt much easier.

Hire a Debt Collection Agency

Collecting debts is not an easy task and doing so with an empathetic, intelligent approach can be doubly difficult. Chasing down non-paying customers can be frustrating. If you have multiple non-paying or late-paying customers, consider partnering with a debt collection agency that specializes in B2B debt collection in San Francisco.

A debt collection agency can save you time, money, and headaches down the road. A reputable debt collection agency takes reasonable care to avoid legal problems and understands that they serve as an agent of the company and that their actions will reflect on the business they are collecting for.

Collecting your money the right way is how Tavelli Co. operates. With over 37 years of experience in receivables management, we are able to collect while protecting your brand and the dignity of those we collect from.

At Tavelli Co., we are committed to helping businesses recover debts without severing ties with their clients. We have decades of experience designing amicable debt collection solutions for businesses. To make an appointment, call (707) 509-5565.

 

DISCLAIMER: Any suggestion from any employee of Tavelli Co., Inc., or its subsidiaries is not intended as legal advice and may not be used as legal advice. It is not intended to be a full and exhaustive explanation of the law in any area, nor should it be used to replace the advice of your own legal counsel.

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Tavelli Co., Inc. has over 37 years of unparalleled experience in the debt collection and receivables management industry. Our mission is to achieve the right balance between getting clients paid and being empathetic to debtor circumstances, through implementing innovative practices, hiring experienced people, and improving business decisions through analytics. We provide peace of mind to all involved by collecting money with no complaints. Tavelli Co., Inc. takes the time to carefully listen to your customers and share their feedback with you through meaningful data and transparent communication, so you have access to the information you need to make quality decisions and improve your processes in the future. Contact us today and let the debt collection experts at Tavelli Co., Inc. help you set your business up for success.

IMPORTANT: Information provided by Tavelli Co., Inc., any employees of Tavelli Co., Inc., or its subsidiaries is not intended as legal advice and may not be used as legal advice. It is not intended to be a full and exhaustive explanation of the law in any area, nor should it be used to replace the advice of your own legal counsel.