Debt Recovery: How To Recover Money From Your Clients?

This scenario happens everyday; you sell your products and services to a new or recurring client

. For some reason, they are unable to pay you. For small companies, this can be a disastrous situation where cash flow becomes extremely tight and can sometimes put your company in a very risky situation. In this article, we will discuss the various options that have when you become the victim of bad debt.

The riskiest payment option is to give credit to your international clients as they can have various reasons for not paying you after receiving your products. Things can also go wrong with letters of credits or other documentary collection. In this situation, you will be faced with the possibility of pursuing your clients by other means than emails and phone conversation. This is when international debt collection agencies come into the picture.

A debt collector usually works by commission which represents no risks for you. They will not bill you until they have recovered some of your money. To clarify, if they are unable to get any money back, they will not charge you anything. This is basically a win win situation for both parties. Debt collection agencies employ experienced specialists and lawyers in this particular field to increase your odds of getting your money back. Some of these agencies may charge high commission rates.

Sometimes you may need some legal actions which will require some additional fee that you should negotiate with the attorney beforehand. No matter where your client is located, it is best to choose a collection agency that has strong international experience coupled with a large global network.

In the end, you will need to analyze whether it is worth your time and money to pursue a client with bad debt or write this lost money as expense.

by: Joshua Adekane.

POST COMMENT

DATA RECOVERY NEEDS AND IMPORTANCE Need Help With Data Recovery? Here's How To Search For The Best Data Recovery Company Best Data Recovery Company The Most Effective Stroke Exercises For Stroke Recovery How to use a recovery tool to recover Outlook PST? Mining For Data With Access American Recovery and Reinvestment Act Still Helping the Nation Go Green Desire for Best Data Center & Dedicated Server in India When Should you Erase Hard Drive Data Methodology, Data Collection, and Analysis The Successful Casio Databank Continuous Intelligence Of Casio Databank Watches Data not Looking Good for Economic Recovery