5 debt collection tips for a worry free Christmas
The end of the year is coming. You have bought your gifts, planned your holiday, and are ready to say goodbye to 2018 and bring in the new year. That is no excuse to say goodbye to your company’s unpaid invoices though. You can still collect them in time for Christmas. Here are 5 tips for collecting your money in December and ending your financial year successfully.
1. Keep calm
The first tip is the most important. Stay calm throughout the process. It is easy to get agitated when your invoices don’t get paid on time. Remember that losing your temper will not get your money faster. You must always remain professional and polite in your communication with your debtors. Focus on the important facts and ensure that you follow the steps correctly. Besides, it’s almost Christmas, don’t ruin it by getting angry.
2. Prepare a list of debtors
Check your issued invoices and make a list of your debtors. Put every debtor you have with the debt they owe you. Prioritise them by their importance to you. This depends on a list of factors, but usually the most important are the biggest and/or oldest debts. Keep in mind that the older a debt is, the lower the chance of it getting paid. If you leave it for next year, you might as well write it off immediately. You will unlikely receive your principal amount, if you get paid at all.
3. Communicate with your debtors
Keep in constant communication with your debtors. At this period, companies try to settle as many of their debts as possible. When that time comes, you must make sure that your company is at the top of their priority list. First thing first, call them. If the call fails, then send them a demand letter. The number of times you can contact a debtor might be legislated, so please check your country’s legislation first. If both options fail, inform them that you will hire a debt collection agency. But don’t wait too long. Time is your enemy.
4. Hire a debt collection agency
You did everything that you could possibly do, but your invoice is still unpaid. Consider hiring a professional. The debt collectors will communicate with your debtor, leaving you time to enjoy the holiday season. At Bierens, we employ a group of highly skilled, experienced, international debt collection lawyers who can collect your invoice successfully. Our lawyers offer you more chances of collecting your local or international claims because they have more means to put pressure on your debtor. For example, we can collect without the need of a Court, but also take legal actions against them if necessary.
The steps above will help you deal with your short-term problems, but you shouldn’t neglect the future. The best way to ensure your claims get paid, is to make sure that you don’t have unpaid invoices to begin with.
5. Prepare for next year
- Improve your client screening process. Be careful with your customers. If you believe that the risk of not getting paid is high, then don’t do business with that client. If an existing customer has failed to pay on time repeatedly, re-evaluate their importance to your company.
- Review and update your terms and conditions. Check your terms and conditions and make sure that they are accurate and valid. Give specific and short payment dates. If your debtor knows that they have 30 days until they must pay the invoice, that invoice will get paid at the end of the next month. Don’t forget that the older debt is, the higher the chance it won’t get paid at all.
- Hire a debt collection agency from the beginning. Don’t wait for your invoice to get old. The sooner you hire us, the more options we will have to put pressure to your debtor.
Do you need more information? Then please pick up the phone and call us. We will happily assist you. Our lawyers cannot offer advice on what gifts to buy for Christmas, but they will offer you their best advice on how to collect your invoices. You won’t have to worry again about debt collection in December, or any other month of the year.