Published Articles Written by Beacon Recovery Systems
Today’s business environment is tough, and you have to battle for every sale. However, until you have received your payment, the sale is not complete… The question is – how do you get your customers to pay you faster and drastically reduce your bad debts without chasing your customers to your competition?
Small businesses are notorious for having weak credit and collection policies. If your business is one of them, then guess what? Your customers will make one for you. You will spend many unproductive and frustrating hours resolving disputes and chasing your money.
It happens to every business. Someone will not honor their obligation to pay your invoice. You’ve sent them invoices, statements, talked to them, sent your salesperson out to talk to them and nothing seems to work. Now you decide to get a third party involved, a professional that knows how to handle the situation and is likely to get the money that you are entitled to.
Congratulations! You’ve taken your defendant to court and the judge has awarded you a judgment. This means the defendant can no longer contest that it owes you the money. It also means that you can get the court to help you to enforce the judgment.
Solvent and law abiding debtors will pay you soon after you have been awarded the judgment. However over 70% of court awarded judgments never get paid. If you want your money YOU still have to find a way to collect it.
Sooner or later it is bound to happen! You are going to sell your services or products to someone that will not pay you. To keep from giving away your services for free you need to be able to accurately assess your risk of extending credit and see through those con artists and deadbeats who make a living by stealing products and services from businesses like yours.
Deadbeats! Everyone unknowingly does business with a deadbeat sooner or later. After all, many of them look and act like normal trustworthy people. They don’t have a big sign on their chest saying “Watch out. I’m a deadbeat. I specialize in lying and stealing. Please sell something to me. I like free things.”
Do you ever feel like your customer thinks you are a bank? Robbing Peter to pay Paul does not feel very good when you are Peter. The fact is, unless you have deep pockets or have a significant working capital line of credit, carrying someone’s debt past the agreed upon terms can really put a strain on your company.