While it is crucial that you bill your customers on time, it is advisable that you address any non-payment as soon as your clients stop paying their dues. That will demand that you prepare to inform the debtors of a second date beyond which you will need to take legal action against them. This may seem harsh, but many companies and individuals suffer financial problems due to unpaid debts.
Here are two critical things that reputable law firms say affect your debt collection in Wellington, New Zealand:
Abusive Collection Tactics
Before you think of hiring anyone that is not proficient enough to handle your debt collection, remember you will be risking incurring massive legal ramifications should they use aggressive tactics while interacting with your debtor.
You also should avoid making false claims about when you served them the notice for legal follow up and the due dates and the amount of money your debtor owes you, and any other issue that your debtor can file as harassment.
The best way is to always to remain respectful and professional, and that ensure that the collection agents only use the full force of the law when required.
Prompt Action is Key
It is of critical importance here that you demand immediate action when engaging debtors. If you show leniency, your debtors could handle this issue lightly. Set deadlines and advice your debtors that if they miss the deadline, you will take legal action against them. But, be sure to make reasonable demands.
It is clear it can get a little challenging trying to collect money owed to you. Efficient debt collection requires a good understanding of the law as well as human nature. It is best you work with a reputable law firm to facilitate your debt collection in Wellington.