Bad debt and your business

**Chatmaster** · 09-Mar-10, 08:26 AM

In general I normally leave my unpaid accounts for maximum of 2 months after the due date continuously communicating with them. If they seize to communicate then I will normally notify them of my intentions to liquidate. This normally works, I have a zero tolerance and do not mess around unless the business I deal with can provide me with a realistic solution for the issue in which case I will work with them and even help them.

**tec0** · 09-Mar-10, 11:18 AM

In general I normally leave my unpaid accounts for maximum of 2 months after the due date continuously communicating with them. If they seize to communicate then I will normally notify them of my intentions to liquidate. This normally works, I have a zero tolerance and do not mess around unless the business I deal with can provide me with a realistic solution for the issue in which case I will work with them and even help them.

The zero tolerance things are honesty not a bad way to go. Money is money and you get enough companies that take chances and in the end of the day it is you that have to sit with the losses just because someone didnâ€™t do their homework.

When you say communicate I assume it is by telephone? Well may apologies if I am wrong but phone calls are not a good way to do it.

I personally would recommend Letters that is delivered to the company in question, and that every letter must be signed for by the â€œcorrect personâ€ Then a phone call to correspond with the written letter. I feel this shows the "person" that you are taking steps and the documents he is receiving can and will be used against him when the time comes.

I hate fear tactics because this is what scamming garbage do to intimidate people. However I letter followed by a fax and phone call shows your intentions to communicate. 2 months is generous and not at all unreasonable.

I do feel that the power of escalation must be applied until you get your money, if not just feed them to the wolves. I will not even lose sleep over it. However constancy and a â€œstep by stepâ€ approach must be applied for it to work well.

I am sure you have a good working structure it is just I thought to add it because some â€œpeopleâ€ still runs around like a headless chickens trying to get their money back. My advice is to draft a 5 step or 6 step escalation plans and stick with it.

>> Contact and communicate
>> Contact and communicate and send letter
>> Contact and communicate and send letter, fax
>> Contact and communicate and send final letter, fax
>> Contact and communicate allow debt collector to make contact
>> Allow legal team and debt collectors to handle proceedings from this point.

The time frame is up to you

**Chatmaster** · 09-Mar-10, 12:56 PM

Originally Posted by tec0

When you say communicate I assume it is by telephone? Well may apologies if I am wrong but phone calls are not a good way to do it.

I personally would recommend Letters that is delivered to the company in question, and that every letter must be signed for by the â€œcorrect personâ€

Nope everything must be documented and I prefer email communications. If a customer phones he needs to send an email as well.

**jinxster** · 09-Mar-10, 10:43 PM

Sorry Im going to disagree with tec0 on that gambling issue....

Ignorance.... is not bliss. If it was, I would use a 9 iron to get my money out of people then claim, I had no other choice.

Something to tell all those people, "pay all your debts as they become due, then gamble for fun." You may actually enjoy it.

**murdock** · 10-Mar-10, 09:05 AM

the problem with debt collecting the hard core way is you need to be very carefull...one of my mates got a 9mm in the chest at point blank range from a little guy...so if you do decided to collect this way beware of the unexpected...and rather go for his family they are much easier targets and get better results.

**tec0** · 10-Mar-10, 09:10 AM

Something to tell all those people, "pay all your debts as they become due, then gamble for fun." You may actually enjoy it.

No you just want an argument Jinxster...

However I do love arguments gambling for fun? So you are honestly telling me that on pay weekend people come and gamble for fun.

I spotted xyz at the roulette table in the casino...

So only the rich may gamble, and may enjoy the silent hope of getting even more out of life then. And don’t tell me that is not what you said because it is exactly what you said... “Looking down on these people may be fun for you but if the tables were turned then I think your point of view may change.

Simple case and point: The majority Lotto players in South Africa are very desperate people. But if you can’t play the rich-persons game you end up being the rich-persons toy....

Gambling is sometimes bad YES... But that being said, a wager on freedom is always money well spend. Just ask the slaves of old world American times: where they had to put their lives against the role of a dice.

**Chatmaster** · 10-Mar-10, 09:21 AM

Originally Posted by murdock

the problem with debt collecting the hard core way is you need to be very carefull...one of my mates got a 9mm in the chest at point blank range from a little guy...so if you do decided to collect this way beware of the unexpected...and rather go for his family they are much easier targets and get better results.

I avoid personal confrontations as far as possible, but to be very honest you need think carefully before doing that to me, very carefully...

**tec0** · 11-Mar-10, 12:27 AM

I see more debt collectors are using police escorts if they feel the person in question is dangerous.

**murdock** · 11-Mar-10, 08:14 AM

i agree i always try avoid confrontations...the problem with my bussiness is i still believe in the hand shake...the think called a mans word...i meet every sigle customer in person and hand delivered invoices until recently...the first question i always ask if payment is late...is there a problem with the work carried out...if not then there is no excuse for non payment...the kind of people i do debt collecting personally are the ones who for example...went and bought a motorbike with the money he was suppose to pay myself the builder and the plumber...i have no pity on these type of people.

but on the other hand a recent example was a lady whos husband passed away and she is left with a whole lot of problems...i only invoiced her for the quoted work and not all the extras and i am prepared to wait till she gets money to pay because i understand her situation.

unfortunatley my bussiness and the little income i make puts food on the table for my family...you dont pay my family suffers.

**Chatmaster** · 11-Mar-10, 08:46 AM

I spoke to the Sheriff that handles some of my cases. He also uses some off-duty policemen to assist with some cases. He has been shot, stabbed and assaulted at numerous occasions. Not the kind of job I would like to do.

Don't get me wrong, I have a heart and I have a number of customers that I am assisting in their own problems, if I have the time off-course. But those that do not play with me I go full on to recover my money legally.