How to recover money from bad debtor

[Thosynho]

Some of the problems entrepreneurs often faced especially the offline business owners is dealing with debtors. Some customers will buy things on credit some will even pay half and sign undertaking to pay the remaining but will not pay. How do you deal with debtors? How do you recover your money back?

 

[Adebayonle7]

Well, it's been like this for a long time and I have witnessed this many times in my mom's business which I later had to manage for some time. Funny enough, people like you described aren't outsiders or new customers, they're either long time customers, families, friends, and acquaintances. A stranger won't come to you for credit atall, or get it and not pay. The solution is simple. If you sell on credit and they didn't keep to their end of the agreement, they have to face the consequences even with embarrassment. Better not to also sell on credit atall no matter who.

 

[Lagazine]

Recovering money from bad debtors requires you to have a lots of patience and hand over such debtor to the credit bereau. It's th
Credit bereau that will help you withdraw your money from such debtor.
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Recovering money from bad debtors requires you to have a lots of patience and hand over such debtor to the credit bereau. It's th
Credit bereau that will help you withdraw your money from such debtor.

 

[EMMANUEL]

Actually, this is not the first case scenario that will turn out this way but many times this occurs I do suggest some little strategy, whereby when you have I customer that always run to you to rescue him or her with a little assistance, what I do is, only lend out or borrow people only what I can afford to give out without looking back for it. Human beings are funny sometimes with their funny ways of not refunding back their debt.

 

[Richard92]

It is very difficult to collect money from bad debitor as a business owner, but you must use strategy in getting back your money, you should always be wise because some costumers can be a pin in the ass because you do not want to run down your business you must be very concious. You ask them gently and take note or have legal backing when giving and collecting your debit.

 

[Denuola]

1. Send a gentle reminder​

The first thing a creditor should do if a debtor has missed a repayment date is to send a gentle reminder. The reminder can be sent via email or over the phone. If the debtor does not make the payment, you can send a follow-up email, referring to the reminder.

2. Discuss or negotiate terms of payment with the debtor​

Sometimes, debtors respond positively after a reminder has been sent to them. They can also request to have meetings with their creditors to discuss and negotiate payment terms. Some debtors have the desire to pay their debts but are unable to do so because they are bankrupt or do not have access to funds at a given time.

3. Review your agreement if there is one​

The creditor should review any written agreement with their debtors to ascertain whether the debtor has defaulted in making payment and whether the creditor is required to follow any other steps before resorting to litigation. Examples of such contracts include a Sale of Goods Agreement, Retainer Agreement, Promissory Note, Loan Agreement.

4. Send a monetary demand letter​

If a reminder has been sent to the debtor, but has failed to make payment, the creditor can serve a monetary demand letter on the debtor.

 

[tuna89]

Recovering money from a bad debtor can be very tough, some of the business owners end up using the military to intervene , some make use of lawyers but at the end, they may not recover the whole money, they recover just parts. the main thing is learning from mistakes and scrapping the act of giving out debt.

 

[kayode10]

This can be very hard especially when it's a huge sum of money. Do we have to involve the service of a lawyer. Tell him everything about the duration and the duration. You will know the next line of action to take in order to recover the debt. While you are doing this, make sure you involve law enforcement agency about the whole issue.

 

[Mikomataracy]

There are two type of debtors.
First are the debtors that are not sturborn and the one that are sturbon .Those one that are not not sturbone it will only takes small time to recover money but those that are sturbone some time you will need to hold them with iron hand before they will pay your money.

 

[Shayo]

There will always be cases of debtors in business. When you are involved with one, send gentle reminders in form of calls or text messages or emails. If the debtor doest bilge or pay up after then you can get a letter of demand or a legal action.
A business is not a charity and you depend funds from clients for growth and expansion so always follow through on retrieving your money back from defaulters.

 

[Dylinks]

In business there are times you will encounter bad debts. Such customers are very uncontrollable and unyielding in terms of payment. In such situations, I think appealing to the person will work instead of wasting time through the legal means.

 

[Seun4luv]

Send a gentle reminder. Discuss or negotiate terms of payment with the debtors. Review your agreement if there is one. Send a monetary demand letter. Consider using a debt collection firm. Explore alternative dispute resolution methods.

 

[WhiteHouse]

The couple of are, one of the organization is going to default one can locate a white knight who can contribute by purchasing up proprietorship with obligation installment contracts considered while purchasing. Two, demand for diminishing force of installment plan with added safe gatekeepers consolidated till customary activity is conceivable, the new contracts the controllers specify concerning all the shields to be followed, while in moderate decreased tasks mode as coordinated, similar to they may not let new speculations, etc.

 

[Ralphjoe]

Recovery our credits from our debtors is always an herculean task as most people will always not want to pay back their debt not mostly because they don't have it but because they feel so pained seeing that money leaving their purse for nothing of value to them.

The best way to recover these debts from our debtors is to make it official by signing documents to make it legal so that when they default, you can threaten them with a lawsuit and if they still didn't pay, you can actually instigate the lawsuit against them.

 

[Kehinde]

Steps to follow If after the period for payment as stated in the Demand letter has expired, and the debtor has still refused to pay you, the next step would be to get in touch with a lawyer who will attempt to recover the debt for you.

 

[Shaffy]

If you have a business where it's easy for people to buy without paying, like selling of products, I think it's best to put a stop to this practice before it starts.

In case it has already started, quit as soon as possible, and constantly send a reminder to those debtors.

Forcefully reminding or arguing with them won't solve the problem, you might just lose more customers instead.

 

[Chief]

Actually, this is not the first case scenario that will turn out this way but many times this occurs I do suggest some little strategy, whereby when you have I customer that always run to you to rescue him or her with a little assistance, what I do is, only lend out or borrow people only what I can afford to give out without looking back for it. Human beings are funny sometimes with their funny ways of not refunding back their debt.

 

[LaylaG]

If your business organisation is in such a way that someone can come and take something without paying then I'll blame you for what has happened because a good and standard business organisation does not give an opportunity for someone to get something on credit

 

[Tinaconcept]

This is a case so many businesses face. Debtors who refuse to have conscience and pay their debt. The only way to avert bad debt is by curtailing debtors someone who is owing should not buy more until he or she pays his old debt and one should learn the method of giving out credits he can forfit

 

[Sariana23]

Who knows what kind of commitment document they sign. In my country, this payment commitment is in such a way that if they do not respond to the payment, they lose the product, since the company goes to the client's house and withdraws it. In addition, when they sell on credit they leave something in guarantee with a price equivalent to the product, in case of non-payment they lose the guarantee.