Tips to Collecting Money Owed to You

One of the biggest problems so many businesses face is trying to get in money that is owed to them. The recent recession combined with so many people being in the position where they cannot afford to pay their bills, has left businesses digging deep to try and recoup the money that is owed to them.

Offering credit to a customer, whether an individual or business, comes with a fair level of risk. Smaller businesses are forced to take action when it comes to offering credit, to ensure they get the project or sale. This can leave them in serious financial difficulty if their customers don't pay their bills on time.

This line of credit can be a regular invoice offering the individual or company thirty days to pay. For those thirty days, the business has provided a service or products and have to wait for payment. Should payment not arrive in a timely manner, the business is left high and dry, so to speak.

There are a number of steps to follow when trying to get in money that is owed, you can't go straight to skip tracing, first you need to ensure you have followed the procedures to try and get the money in as quickly as possible.

Not all small businesses have the funds to take their customers to court in order to get the money they need. So the first step is to provide an invoice. The invoice should be submitted when the service or product is delivered. Ensure the invoice clearly states a payment date along with any default charges that may be incurred should the payment not be made in a timely manner.

Before the due date, it's advisable to send out a statement showing your customer the amount that is payable along with the payment date. This way you have covered all your basis in ensuring they are aware when they owe the money. A reminder is also a good idea the day of payment, just a little nudge to remind them that they have a payment to make.

With so many people still paying by check, you still have to wait clearance, so the sooner you can get the money in the better. After a few days past the payment due date, it's time to pick up the phone and give your customer a call.

Chances are you'll hear a long sob story about how they are struggling, or they have sent payment and don't know why you haven't received it. There are those times where the line is disconnected and your heart skips a beat.

For companies that have given their customers a time frame in order to make a payment, you are relying on that money coming in and when a customer disappears while owing cash, it can be a financial strain on the business. This is time to find a company that provides skip tracing.

Skip tracing uses all the information you have on your customer to find them, their relatives and close friends. It is a reporting system that may provide you with additional information you didn't have on your customer in order to help you find them and get the money owed.

While skip tracing does cost money, it's an affordable way to find your customer that has run in the middle of the night and find out where they are. Most companies that provide skip tracing will generate a report using the customer's social security number and other information to give you the additional information you need.

When all else fails, skip tracing is definitely a solution for businesses to find clients that owe them money and get any amounts due.

at 9:42 PM
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