Even when you’ve taken all the right steps from a credit report to clear agreements with the customer, there may still be cases where the customer either doesn’t want or can’t pay. In business, it’s not uncommon for companies to hesitate to outsource unpaid invoices, even after repeated reminders. Often, the fear of damaging the relationship with the debtor is the reason behind this.
It’s crucial in this situation that you are confident in your own service and offer optimal service to the customer. By making clear agreements and documenting all the steps you’ve taken to get the invoice paid, you can confidently decide to hand over the claim. But how can you ensure that this process goes smoothly?
When entering into business transactions, agreements on the payment terms are made. Here is an overview of the most common steps when the agreed payment term is not adhered to.
Weeks or even months can pass between invoicing and payment. What if the debtor doesn’t pay despite the invoice, reminder, and phone agreement? Has active efforts been made to find a solution? After answering these questions, you can assess the actions taken or consider handing over the claim.
If the invoice is still unpaid, and you have taken various steps to obtain payment, assess the actions. List on the left side the steps you have taken, and on the right side, what the debtor has done to find a solution.
If it turns out that the efforts are one-sided, considering handing over the claim becomes more straightforward. You can clearly indicate the actions you have taken based on the overview, empowering your decision-making.
Outsourcing a claim offers various advantages. You save time with non-paying customers, increase the chance of success with a collection partner, and non-paying customers are ‘educated’ to pay on time in the future.
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