How do you set up a payment arrangement?
Has your debtor not stuck to your payment arrangement? Don’t worry! You have options.
1. Make some calls to chase your payment arrangement
Call your debtor and ask, politely, why the payment arrangement hasn’t been followed. Explain that you came to the agreement together and you expect them to honor it. Refer to the documents and stick to them. Remember: it’s important you don’t agree to a new payment arrangement. You’ve already done them a favour by making a payment arrangement instead of insisting on the original invoice terms. You can demand payment.
2. Send a payment arrangement reminder
Send your debtor a written reminder. Point out that they agreed to a payment arrangement. Include points from the arrangement and be firm. They should pay as agreed. Remind them that if the payment schedule is not followed you will hand the claim to a debt collection agency or debt collection lawyer.
3. Hire a debt collection agency
Have you called, sent written reminders, and your debtor still won’t pay? This may be the perfect time to call a debt collection agency or debt collection lawyer. They specialise in this field and can often manage to make customers pay. If you contact a professional it’s important to include all pertinent invoices, information and documents, including your recent payment arrangement and any reminder letters or emails you have sent.
4. Take legal action
Depending on local laws, you can also take the debtor to court to enforce payment. If the court orders the debtor to pay the outstanding claim, the debtor cannot ignore the claim any longer. And again, depending on local collection laws, if they still refuse to pay, it may be possible to seize goods.
Would you like more information on payment arrangements? Contact us! Our debt collection specialists are ready to help you get paid.