Capitalism is a basic process. You offer a service and another party pays money for said service. The business makes money and the lights continue to stay on. It’s simple, at least in theory. In practice, lots of “companies” just plain refuse to pay what they owe. Apart from being rude, it leaves owners such as you in a vulnerable position. No organisation can make money by working for free, which is why the debtor needs to pay their bill.
Here are four ways to get your money from a stubborn non payer.
1. Don’t Write Off A Debt
It’s what the person or company wants because it means they will never have to pay. Writing off debt is tempting, particularly when it’s been ages since the transaction. However, there are ways to get a result as long as you are persistent. A lawsuit, for example, shouldn’t get dismissed out of hand. As annoying as it is, the firm has to stay in contact and pester the opposing party to pay. Hopefully, your persistence will force them into making a payment of some kind. One thing is for sure; they’ll never clear their debt of their own accord.
2. Be Flexible
Far too many creditors are heavy-handed in negotiating a settlement. Yes, you do have the leverage because the law is on your side. Still, ordering people around is a sure-fire way to make them more stubborn. Remember that the majority of people don’t respond well to threats or orders. Rather than being rigid, try and come to a compromise. A trick the big companies use to recover their debts is to use a payment plan. It takes longer to receive the full amount, but it’s better than nothing. Plus, debtors are more likely to pay if they can contribute a small amount per month.
3. Use The Debt As A Loan
There are two ways to use a company to fulfil an unpaid debt. The first is to use a cashflow finance lender to access the money. The way it works is simple: the lender provides the money upfront for 90 days. They don’t help recover the debt, but they do give SMEs more time to find a solution by stumping up the cash. Another tactic is to sell the debt altogether. If you can’t be bothered and want to cut your losses, people will buy your arrears. These firms have dedicated teams who deal with debt collection as well as years of experience.
4. Go To Court
It’s a last resort, but it’s one to keep in mind. Yes, going to court can backfire if the judge/jury doesn’t rule in your favour. Also, there are the court fees to include. However, the courts tend to side with the person in the right and instruct the opposing side to pay their court costs. Not only will you get your money back, but the lawsuit might not cost a penny. Just be careful of the company filing for bankruptcy.
The one thing to remember is not to give up on a debt. If you do, you will never see the money again.