Dealing with a customer who can’t or won’t pay your business for its products or services is an unfortunate experience. And depending on the size of your business and its cash flow, it can present big issues. If you’re debating your options here in Nevada, Business and Professional Collection Services can help. But first, here are three things a business should do if a customer won’t pay.
Take Notes & Document Everything
Keeping track of unpaid invoices is an important first step. Make sure to keep updated contact information for all customers, particularly those with outstanding debt. Whether you’ve providing a service or you’ve sold a product, keep clear notes on the agreement you made with a customer and his or her current contact information.
You should also create documentation that serves as a clear paper trail of unpaid debt on services rendered or merchandise. A contract outlining terms with a customer’s signature is proof that you’ll need should your customer refuse payments. Keep any documentation that you have, including copies of any correspondence you’ve sent regarding outstanding debt, with your notes and contact information.
Contact the Customer Directly
While it’s easy to assume the worst, there might be a reasonable explanation for a late payment. Contacting your customer gives them the opportunity to settle their debt or work with you to create a payment plan. If you’re unable to contact a customer via phone and you get no response to written letters or email, this is often a sign to bring in a professional collection agency like BPCS.
Contact a Collection Agency
Many businesses have a hard time deciding when to bring in a collection agency. But the fact is, the sooner you do, the greater the chance maximizing your return. And there are other benefits, too. Turning over outstanding debt to the professionals frees you and your staff to focus on your business. And established, reputable firms like BPCS understand how to preserve relationships between you and your customer, while still collecting on money owed in an ethical and compliant manner.
If your business is struggling with unpaid debt, start with these steps. If you still aren’t successful, contact BPCS and we’ll make make a plan to get you what you’re owed.