As a business owner, you know that collecting debt is an essential part of keeping your business afloat, your payroll running smoothly, and your cash flow healthy. However, it can be a difficult and time-consuming process. That’s why many businesses hire a debt collection firm like Gilliam & Mikula. However, if you want to go it alone… here are some tips on how to collect debt as a business:

Have clear and consistent payment terms and policies

Your payment terms and policies should clearly specify to the customer when invoices will be sent, when payment is due, and the repercussions for missed or incomplete payments. 

Be proactive

The best way to avoid collecting outstanding debt is to ensure it doesn’t become delinquent in the first place! Be sure to contact your customer before the payment is past due. Have your A/R department take action well before your customers miss a payment. Send out invoices promptly and follow up with customers who have not paid on time.

Be professional and respectful

It’s important to remain professional and respectful even when dealing with a delinquent customer. Remember that you’re trying to collect money, not make an enemy – and the reputation of your business is on the line.

This is a key reason many businesses hire a debt collection agency. You do not have to pit your people and your business against the customer when you outsource your debt collection efforts. Instead, the debt collection agency handles their case… and their response.  

Be persistent

Don’t give up easily. Keep following up if a customer fails to pay after your initial collection attempts. Be sure that when you take them in as a client, you obtain multiple contact methods.

Know the laws

There are different laws governing debt collection in every state. Ensure you’re familiar with these laws. Violating these laws can forfeit your opportunity to collect debt or, worse, put you in legal trouble. 

Offer easy payment options

This could include accepting credit cards, checks, PayPal, Venmo, etc. Additionally, setting up payment plans or waiving late fees for full payment could entice debtors to pay up.

Be understanding

It’s very easy to take on an adversarial relationship with a debtor. However, this is often counterproductive. Understand that they could have challenges that are preventing them from paying. This will help you understand their financial situation and why they may be late on payments.

Be willing to compromise

Sometimes, you may need to negotiate with your customers to reach a payment agreement that works for both of you. That might mean deferred payment or that you can’t collect in total. However, either is a better option than not collecting at all.

Hire a professional debt collection agency

If you’ve exhausted all your options, consider hiring a professional debt collection agency.

Gilliam & Mikula Knows Exactly How to Collect Debt

Collecting debt can be challenging, but it’s important to remember that it’s a necessary part of running a business. By following these tips, you are more likely to collect the money you’re owed and keep your cash flow healthy.

If you want the absolute best chance at getting what you’re owed, you should hire the debt collection agency of Gilliam & Mikula. We have the people, tools, tactics, and experience to successfully collect debt, and we’d love to work with you!

Gilliam & Mikula is centrally located in Richmond, Virginia, and serves clients throughout the Commonwealth of Virginia. Our attorneys have over forty years of combined experience in various practice areas, representing individuals and businesses. We are licensed to practice in all General District Courts and Circuit Courts of the Commonwealth of Virginia including, Central, Tidewater, and Northern Virginia areas, as well as the State of Maryland.

The attorneys at Gilliam & Mikula are here to smoothly guide you through the “legal maze” and ensure that you achieve the most favorable outcome.

The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.  Information on this website may not constitute the most up-to-date legal or other information. 

It all starts with a message or a phone call.  Reach out to us at 804-743-0900 or fill out the form below and let’s get to work.