If youíre running a business may it be small or enlarged you are often confronted with untrustworthy clients that avoid paying their debts. Statistics say that many small businesses go into bankruptcy within 12 months from their beginning due to this factor.
Non-payment is thus an issue of interest for businesses of all sizes. No only does it cause cash flows problems, but it may also damage the relationship you have with serious customers, hence affecting your image. When youíre trying to solve this problem, the best idea would be to hire a debt recovery company. Although you might try on your own to contact the debtor, the get back the money you need, it often happens that you are confronted with a rejection from the debtorís side. Still, before you contact the above mentioned debt recovery company; you should try and discuss the situation with your customer and reach an agreement.
If this initial approach does not work, you might want to file a case against the respective customer, and hereís where the debt recovery company comes into the picture. There are specialized attorney working there who may help you take advantage of all the legal provisions in order to get what itís rightfully yours.
Of course, the services of a debt recovery company require you to pay some fees, usually 10% of the sum to be recovered from the customer, but as long as you have the certainty that youíll get the rest of the sum back, itís worth it. Furthermore, a debt recovery company may also place the debt as it were its own, thus improving your cash flow.
As you can see, working with a debt recovery company is in your favor. You have the guarantee of getting back what the customer owes you, while not being stressed by the whole process of recovering.