Tuesday, September 05, 2017

# business # finance

Keep A Positive Relationship With Your Debtors To Increase Cash Flow




Debtors are often a fickle bunch. Some are genuinely apologetic to owe you money and will take any steps necessary in order to resolve the debt, even if that doesn’t mean paying it outright, to begin with. Some people would rather disappear off the face of the earth rather than repay what they owe you. Both sides of the spectrum exist, and unlike most spectrums, you definitely want to be on the side of the former. However, having a bad relationship with the latter, or those close to the latter stereotype than you’d like, can mean that your money disappears through bankruptcy, a loss of contact with the debtor or potentially having to wipe off your losses because claiming the debt isn’t worth the money and time investment it will take to reclaim.

Luckily, there are ways around this, and it all begins with keeping a positive relationship with your debtors. This should be applicable across the entire spectrum of those who owe you money. While people unjustly owing you money could be seen as a negative business interaction, and it is, taking that attitude will unfortunately not help you with the resolution, which is all that matters here. We’re providing tips of how  to do so in the following article:

Collection

You’ll need a solid debt collection strategy. For some businesses, especially small ones, this is not feasible. Luckily, debt collection firms exist to act as an intermediate between you and the debtor. They can help you draft professional legal letters asking for payment, but can also help your debtors understand that you are willing to accept some future recompense for the whole situation, such as a payment plan. Outsourcing this issue to a specialized firm can not only help you get more effective results but can save you plenty of time you would have otherwise spent chasing the issue, with it’s either fruitful or fruitless result.

Communicate

You must be willing to communicate with your debtors at all times, and sometimes this is the opposite of demanding or forcing the terms of legal debt acquisition on them. If you seem approachable, they are much likely to contact you in an attempt to make small payments. Allow them to contribute to the degree that is worth it for you. Of course, you should never sell yourself short as this can lead you to not being taken seriously, so be sure that you dictate the terms of their repayment and politely highlight the issues which will take place if they fail to continue with the arrangement.


Don’t Freeze Their Accounts

Stopping all future trade with the debtor is a great way to make them feel alienated from your firm. Allowing them to pay back the balance in the right time should afford them the second chance to use your services again, so long as they pay upfront this time. This tactic is used by card online services such as Uber. If you owe an outstanding allowance, you are unable to use the service again until you pay the amount, but you will be reinstated without consequence if you pay. Of course, some business debts are much more than even the longest cab ride, but the same attitude is relevant here.

These tips can help you stay a force the be reckoned with in the business world, and it will be done with positivity and maintaining potential client relationships.



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