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Collection Procedures

03 Jun 2020 6:03 PM | Cordina Charvis (Administrator)

Collecting debt from clients is a painful reality of doing business. However, the pain can be reduced if you institute a process and procedure for collecting debt.

  • Communicate with your clients to understand why their bill is unpaid.
  • If your clients are confused about your billing, make sure to explain it to them.
  • If your clients have questions about your billing, respond promptly to your clients’ questions.
  • You must have a written agreement that clearly outlines yours and the client's responsibilities and the agreed upon schedule payment.
  • If you have complied with the terms of the agreement, you should contact the client concerning non-payment.
  • Do not contact the client concerning non-payment until after the agreed payment date is past due.
  • However, it is important to contact the client soon after they have exceeded their payment timeline.
  • You may contact your client in person, by mail, telephone, or email and in some cases you may text your clients.
  • Never contact your client before 8 am or after 8 pm  concerning a debt.
  • Be sure to keep notes of all telephone conversations such as the date, time and the telephone number you called when trying to collect a debt.
  • Always keep copies of all written correspondence.
  • You may consider working out a payment plan with your client.
  • You may discount the debt.
  • If you discuss a settlement agreement verbally, always follow up with the detail of the verbal agreement in writing.
  • Depending on the circumstances, offer to compromise or to mediate.
  • You could write off the debt.
  • Above all, beware that if you violate the debt collection laws, your client has a right to sue you in state or federal court.

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