Collecting debts: telltale signs that your customer is not going to pay.The economy has not been good to us the past several years. Your customers are taking longer to pay. How do you know when its time to turn a supplier/customer relationship into a creditor/debtor one? Here are some things to look for when deciding when it's time It's Time was a successful political campaign run by the Australian Labor Party (ALP) under Gough Whitlam at the 1972 election in Australia. Campaigning on the perceived need for change after 23 years of conservative (Liberal Party of Australia) government, Labor put forward a to actively pursue your customer for a debt: [ILLUSTRATION OMITTED] "The check is in the mail." or "Send me the invoices again." These are responses that one frequently gets when one inquires about an outstanding invoice An itemized statement or written account of goods sent to a purchaser or consignee by a vendor that indicates the quantity and price of each piece of merchandise shipped. A consular invoice is one used in foreign trade. . When you hear either of these responses from your customer, it is unlikely that you are going to get paid without professional help. The last check bounces. This is an excellent indication that professional help is needed to collect your debt, especially when the debtor One who owes a debt or the performance of an obligation to another, who is called the creditor; one who may be compelled to pay a claim or demand; anyone liable on a claim, whether due or to become due. gives you an excuse such as "the bank screwed up." While this does happen once in a blue moon very rarely; - from the observation that the moon rarely has a bluish tint. See also: blue moon , it is not likely to be that phase of moon when it happens to you. The last check is for only a part of what is owed. While your customer may be experiencing cash flow issues, if he only sends you a part of what is owed, your customer may be in trouble. If he had called you before sending you the check to work out a payment plan, you should feel far more comfortable with that sort of a partial payment than one that is unilaterally u·ni·lat·er·al adj. 1. Of, on, relating to, involving, or affecting only one side: "a unilateral advantage in defense" New Republic. 2. dictated to you by the customer. The customer no longer takes your phone calls. Telephone is, by far, the most effective tool for collecting a debt, other than litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . Nothing puts pressure on a customer to pay than repeated telephone calls and messages. When your messages go unanswered, you know you are going to have a problem collecting. Your registered letters are returned unclaimed. Another effective technique for collecting money is sending a registered letter. This usually rattles rattles vernacular for purulent bronchopneumonia in foals with pneumonia caused by Rhodococcus equi; name derived from the moist, loud crackles heard on auscultation of the lungs. a debtor because there is a stigma stigma: see pistil. Stigma mark of Cain God’s mark on Cain, a sign of his shame for fratricide. [O. T.: Genesis 4:15] scarlet letter associated with sending a registered letter to a debtor. If the customer does not sign for the letter, this is proof positive that you are not going to get paid without professional help. The customer now has objections to the goods or services delivered. Finally, it usually happens that when you finally get a hold of your debtor to make good on your invoice, he suddenly has all of these objections that he never communicated before. While there is probably nothing wrong with the goods or services that you delivered, the debtor just does not or cannot pay you immediately. Chances are that if you ask the customer to kindly return the specific goods to which he is objecting, he cannot. He probably already placed these goods into his general inventory. Your best bet is to press the customer for specific details, including the shipment and witnesses to the allegedly defective defective adj. not being capable of fulfilling its function, ranging from a deed of land to a piece of equipment. (See: defect, defective title) goods. You should then send him a confirming letter as soon as possible that identifies these goods. Ask for an opportunity to inspect these goods as well at his place of business as soon as possible. Again, chances are that when the customer is pressed for such details, he will have none to share with you. Be sure to communicate this in your confirming letter to the customer as well. This will avoid future problems if you have to sue this debtor to collect. Do not disregard these signs, and under no circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or should you ever be afraid to ask for your money. Gary Nitzkin is the founder of Nitzkin & Associates, Debt Collection Attorneys in Southfield, a Silver-level member of the Detroit Regional Chamber. [ILLUSTRATION OMITTED] Gary Nitzkin has written a series of articles on debt and debt collection for upcoming issues of the Detroiter. Visit the Detroiter Online at www.detroitchamber.com/detroiter for these related topics: * Factors to consider before turning your delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. accounts over to a collection agency * Collection agency vs. collection law firm: Where should you place your debt? * How to collect your judgment * Pitfalls for business owners to avoid |
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