Non-payment is frequent in many companies, and although, in the case of large amounts, the managers are pushed to make every effort to collect them as the survival of the company may depend on it, this is not the case when it comes to smaller amounts.
However, the annual sum of these small amounts significantly decreases the turnover of any company. The problem lies in the fact that the businessman fears that the effort to collect each non-payment in terms of economic resources and time, is much greater than the amount owed. So, what should be done?
Our advice is to turn to specialist debt collection lawyers for three reasons: because they have specialised staff, because they avoid wasting time and resources, and because they avoid tension with the client.
Debt collection management involves mastering the different existing claims systems and being fully aware that it is just as important to collect as it is to maintain the business relationship with the client, not so much because he can rely on our services in the future, but because that client will talk about us to his/her contacts.
Similarly, collection management involves a balance between finding a solution to the non-payment and concessions that will encourage the customer to pay the debt.
Moreover, we should not forget that the best tool to ensure collection is the prevention of future defaults, and this is even more important if we have already suffered from the customer’s arrears. We must then assess the risk we would be taking with him/her and take the necessary measures to avoid non-payment.
As we are familiar with the legal problems of the business world and their possible solutions, our firm has developed different lines of service that aim to offer a response to this type of situation, especially in those sectors that, due to our work, we are extremely familiar with. An example of this line of service is NotariSolutio, a solution designed by and for the recovery of Notaries, where it is estimated that between 5 and 10% of turnover is lost each year due to non-payment.
Image by Stuart Miles (Freedigitalphotos)