You’ll efficiently recover dues owed to your business if you opt for debt collection by JMA Credit or similar agencies. Businesses have to remain solvent and profitable, especially for startups yet to break even on initial investments. It is better not to lend when your company is yet to meet the fiscal year’s gross profits, but debts and loans are unavoidable when you’re partnered with suppliers and clients essential to your business’s operations. You’re probably involved with an item supplier asking for an advance to kick off production or you’ve shipped orders to a client pending payment; collectible dues are worth considering if you want to maintain business partnerships. Some items will also sell if buyers are allowed to pay in installments, items like vehicles, jewelry, or real estate property. Loans are only feasible if debtors pay up when it’s time to collect, though.
Mind the precautions before you approve a loan. Many debtors forego payment because they usually don’t sense its urgency, at least not until the due date looms on the horizon. Overdue debts are harder to collect because the urgency has passed and there are newer expenses to attend to. You should avoid problems like this by indicating the exact due date on the invoice. This sets a deadline for the payment and includes the invoice as part of the debtor’s billing cycle. You’re giving debtors an excuse to move payments to the end of priority lists when you don’t implement strict deadlines. Once the invoice is sent, make sure you follow up on payables on the due date (you can also hire third-party services for the task, like debt collectors from JMA). If you’re sending items or providing service pending payment, send the bill two weeks after delivery or rendered service. You can’t afford to fly under the radar of companies or clients with dues to answer for.
The invoice should be sent to operations or purchasing departments of companies, but you should address the bill to the person in charge of finances. Opt for a personal approach when it’s time to collect. Make sure your company already has debt collection protocols, though, especially for clients deliberately avoiding payment. Diplomacy is the key to ensuring paid dues, since your business has everything to lose from a batch of bad debts. If push comes to shove, you can still hire debt collectors to do your dirty work, so to speak.
Debt collection agencies know all the tricks of the trade, and they’re your last resort if initial attempts to solicit payments end up against a brick wall. From phone calls to credit reports, debt collectors use methods which comply with terms of trade and ensure recovered dues. Third-party services are preferable if you’re managing a large company with plenty of suppliers, partners, and clients, and especially if the debt collection process comes with legal consequences. Outfits like JMA Credit Solutions collection agency ensure balanced accounts for your company with persistence and diplomacy. Going after a debtor is hard enough when your business has other things to worry about, so it’s better if you outsource the task to agencies that wouldn’t pull any punches in your behalf.
Ben Wall has been involved in real estate property development over the last ten years. He is passionate about this industry and wish to share what he has learned from his experience with Australian suburban real estate to those who wish to know more about the business.