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Posted in Family Business

How can a family business deal with unpaid debt

How can a family business deal with unpaid debt

Sometimes clients pay when it is too late, this being the preferable scenario. Unfortunately, clients are not always responsible and they do not pay the invoices you send them. If you are running a commercial organisation in which decision-making is affected by family members, you know that you cannot manage if you do not receive payments for the products or services provided. One of the most important responsibilities is managing cash flow and make sure that you are paid. When it comes to collecting overdue accounts, you have to put your faith in debt collecting agencies in London. They know perfectly well how to recover money that is owed. Nonetheless, if you want to take matters into your own hands, you can use the following strategies. They are guaranteed to work.

Write a reminder email

Maybe you do not want to disturb your clients, even if they refuse to pay their invoices. If you genuinely want to pursue the friendly path, you can start by sending a reminder email. What you have to remember is that customers are more likely to respond to email than incessant phone calls. When writing he message, you have to be at the same time polite and direct. If your first demand is not successful, you can send another one.

Locate the debtors

Unquestionably, the first thing you should do is locate the clients that owe you money. While this may seem like a difficult task, you have to do it. Family-based businesses with huge amounts of debt struggle and a great number actually do not survive the first years due to the inability to collect debt. So, how do you find the deadbeats? Well, in order to get ahold of debtors, you have to get updated client information. The likelihood is that you will not find out much by Googling their names, maybe is there are any complaints. The only thing you can do is search through databases of consumer information.

Try renegotiating the debt

Maybe your clients are not paying their invoices because they have the money to make a full payment. This is indeed an unfortunate situation, but you still have to get your money. Instead of applying pressure, put yourself in their position. Nobody wants to be labelled as a debtor. What you can do to recover the money owed is to negotiate the bill, in other words make a financial arrangement. This way, you are sure to get paid.