It’s Business, And It’s Personal

How companies can get what they are owed

On Behalf of | Dec 21, 2017 | Business Collections |

In most cases, business owners in North Carolina don’t have to worry about customers not paying their bills. According to the Credit Research Foundation, delinquencies are rarely longer than seven days. However, if a customer is delinquent on a payment, it may take tact to resolve the issue. Treading too lightly may result in a customer who doesn’t pay. Of course, being too mean to a customer may result in a lost relationship.

As an overall rule, it makes sense to pursue large balances as opposed to smaller ones. Furthermore, business owners should also take care to not write off too many small balances throughout the year. Ideally, a business will take into account who the customer is when deciding on a course of action. Family members or typically reliable customers may not need a lot of encouragement to make a payment in a timely manner.

If a customer routinely pays late, it may be necessary to start the collections process earlier. As part of the debt collection or recovery process, it may be worthwhile to speak with the customer by phone. It may also be a good idea to send a letter to the customer if the payment isn’t received in a timely manner. The letter should explain what could happen if payment isn’t made soon.

The collections process might not always be straightforward. In pursuing a debt, a business owner may need to think of solutions that will avoid straining relationships with customers. Furthermore, customers have legal rights that need to be respected. Those who are having trouble convincing clients to pay their debts may wish to talk with an attorney. This could make it easier to draft documents or otherwise create a debt collection strategy.