Step-by-step guide to collect payments from non-paying customers

Even though there are numerous people who pay their debts and purchases on time, there is always a small number of people who are late with their payments or refuse to pay them at all and this mostly happens in businesses that operate on an invoicing system. However, things should not be left this way because this means that your company will lose money, and a great solution to this matter is to work with a collection agency such as in order to recover your money. Here is a step-by-step guide you should follow in case you need to collect money from bad payers.

Reach out to your customers first

The first step you have to make once you notice you are dealing with bad payers is to kindly remind them they have to pay their bills as soon as possible, since their due is already past. Most of the time, this is simply an honest mistake and customers solve this problem the moment they receive the note.

Resend them the invoice and give them an ultimatum

Sometimes, customers try to delay their payments claiming they lost their bill, in which case you should resend them the invoice. What is more, you should give them an ultimatum until when they should solve their paying problems. Send them a note to tell they have a specific deadline until they have to pay their purchases.

Work with a collection agency

If you sent numerous notes, emails and made numerous calls to reach out to your customers but everything was in vain, the best solution in this case is to resort to the professional services of a debt recovery agency. There are many such agencies on the market, so you can do some research on the internet and select the one that best matches your needs and interests. People working at these collection agencies know exactly what negotiation strategies to use in order to reach a satisfactory result, but the secret to succeed and recover your money from non-paying customers is to hire the best agency in your region.

File a lawsuit

In case none of the previously mentioned methods works, the best solution is to file a lawsuit. Do not be afraid to make this step, since it is for your company’s good to recover money from bad payers.

As you can see, these are the steps you are supposed to make in the process or recovering payments from non-paying customers.