When should I use Debt Collectors?!

If you find yourself lucky enough to be supplying services or goods to very big companies, you will sometimes find they demand 60 or 90 days to pay, or maybe even longer. Often those long payment terms are then passed down the line by over-stretched suppliers, so it is the very small businesses at the bottom of the supply chain that suffer the most.

Don’t sit on the problem for a few weeks hoping the client will pay. Debt Collection agencies say the older the debt becomes, the lower the odds of it being paid. Some tips for when to use debt collectors are below. Be upfront with clients about using a DCA Don't wait any longer than necessary Always send a final notice to a customer Amend your T&C's to include using DCA's For many businesses, just receiving a letter from an organisation of professional debt collectors is enough to trigger a swift payment. There are clear processes you can follow to help you get paid on time, and know exactly when it’s right to pass the debt onto an agency.

Prior to using Debt Collectors, it is sensible to send your customer/consumer a final letter politely advising them that they have broken the terms of the agreement and advising what the potential repercussions could be, i.e. the debt being passed to a debt collection agency thus incurring further costs . Also, make them aware that they cannot order more from you while a debt is still outstanding. That way you can try to maintain a good working relationship with the client by affording them a final opportunity to resolve the matter without the use of a 3rd party agency.