Debt Collectors

[KimH]

Up until recently my clients paid their invoices timeously - in the last few months though I have found that payments come in later and later. As a small business outstanding debtors can be the kiss of death... so I think it's time to nip this in the bud before it becomes a serious problem.

Debt collection is a fine balancing act - you need to be firm without being downright ornery and potentially losing a valuable client.
I have one client - as it happens he is my very first client and I have of course got a special fondness for him because of this - but he is now pushing the envelope and affecting my cash flow to the point where I can't be 'nice' about this anymore - I am now considering going the debt collection route - before starting my own business I worked for a company that used a legal firm to do their collections, the debtors book was huge and the company turned over about a trillion rand more than I do now - so my question is where do I find a reputable collections firm that handle collections for us small guys? Not the leg breaking kind mind you.... as tempting as that is

[IanF]

Kim
I have used Credit Solution Partners Singhms put me onto them. They got the guy to pay and charged 15%.
You just have to be prepared to lose the customer but you don't need customers who don't pay.

[geraldenek]

I recently found a very good solution.

The problem with handing them over to debt collectors is they normally take 20% on the debt they collect. People just need a scare so I found Experian writes a letter demanding them to pay within 20 days before they/their company gets blacklisted. And it worked... and the best of all was it cost R73 for the letter.

https://www.experian.co.za/debt-recovery/effective-debt-collection-process-management-collection-letter.html

[helpwithdebt]

I agree with Geraldene.

The thought of being listed on ITC is one too many for most business owners and private consumers today. Since the NCA came into effect it does not matter if you have a judgement of R10 000 against you or a "default bad payer" listing of R1000, the negative rating on your credit score will be the same.

Hop this helps

[KimH]

Thanks for the advice, I am going to go the experian route on this one - thanks for that GeraldeneK , I will lose the client but as IanF so rightly says we don't need clients who don't pay.

[Perform Computers]

Kim, from one small business owner to another.... I've had numerous clients like these... and in my experience.... few months down the line, they always come back asking for help.

Be firm. Stand your ground.

[Suboo]

Just don't use the tough guy debt collectors, they come in all friendly, but then they keep asking you to pay them for expenses, when you say you want to stop, they start hounding you and say you owe them.

Good luck it's tough out there now

[Just Gone]

Good to know about Experian

[damianN]

Talking about debt collectors, President Obama’s deficit reduction plan would allow debt collectors to call the cell phones of people who are late on government-backed loans. Even if the plan garners enough congressional favor to pass, consumers would still have recourse to end the unwanted calls. According to the Fair Debt Collection Practices Act, debt collectors are not legally allowed to continue calling debtors if requested not to in writing.

[Velly Maebela]

Hey Guys i am new here and wow you guys are good at these advice thing. I had the same issue and i am taking the advice home with me.