When it comes to debt collection for business, there are many things you can do as a business owner to minimise the need for debt collection lawyers. Making your policies clear, communicating with clients, making payment easy and offering payment discounts can all make a difference. But failing all of these things, you can always contact debt collection lawyers in Melbourne.
Make Your Policies Clear
When you’re just beginning a new business relationship with a client, it’s vital that you set expectations right from the get-go – and this includes payment terms. Make sure you put all agreements in writing, where you also spell out exactly how and when you expect to be paid. It’s harder for clients to forget payment arrangements when they’ve been laid out clearly from the very beginning. Moving forward, make sure every invoice you send out has your preferred payment methods clearly outlined.
Communicate with Clients
Before getting debt collection lawyers in Melbourne involved, consider if debt collection is necessary. As a first port of call, you should always try to personally communicate with your client over the phone. While you can also try sending overdue invoices via email, there’s something much more direct about communication via the telephone. Your client may try to fob you off, so ensure you have all the facts at your fingertips on any payments they’ve missed. Make sure you provide an easy way to pay on the spot, and any other information they might need such as up to date invoices.
Make the Payment Process Easy
It’s wise to find a few convenient ways to accept payments, ensuring your clients have options and can choose a method that suits them best. If you’re able to offer preferred methods of payment, this may help to prevent late payments in the future. If, on the other hand, your payment process is out dated or convoluted, this could mean a greater need for debt collection and debt collection lawyers in Melbourne.
Use Fast Payment Discounts
Rather than slapping clients with late fees, a better approach can be to offer discounts on bills for early payment. The simple incentive of a small percentage off the bill can be a strong psychological motivator for many people. Consider how each tactic might feel to your clients – being reprimanded with a late fee, in comparison to being rewarded with a discount. They have quite different feels to them, and which one you choose may depend on how you want to do business and how you want your clients to feel when they interact with your company.
Consult with Debt Collection Lawyers
If you’ve done your very best to set up your company to encourage prompt payment of your invoices, but some clients still owe you money, then you may need to consult with debt collection lawyers in Melbourne. Professional debt collectors may have techniques for getting your money back that are beyond your knowledge or experience. There’s only so much you can do as a business owner. When you begin to feel out of your depth when it comes to debt collection, it’s then time to call in the debt collection lawyers.