How to recover money from bad debtor

[Thosynho]

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.

Hmmm, if you say better not to sell on credit at all to people than sell and don't get paid eventually. Some people like members of your family or close friends, you not selling to them on credit can lead to family problem don't you think so?

 

[Psalmsavatar]

The following steps can help to recover bad debt.

1. Contact with a friendly payment reminder. ...
2. Contact with an overdue payment reminder. ...
3. Contact your customer with a final notice. ...
4. Try to make direct contact with your customer. ...
5. Send a formal letter of demand. ...
6. Consider using a debt collecting agency as a last resort.

 

[unhappy triad]

Its better to do pay before service. If you can not then, get your transactions docuemented

 

[Naina]

This can be very hard especially when its a huge sum of money. When you involved with one send gentle reminder in there email,massages and calls. If the debtor does not pay after then you can get a letter of demand are a legal action.

 

[Azhar119]

There are following strategies to recover debt procedure.
Contact with a friendly payment reminder. ...
Contact with an overdue payment reminder. ...
Contact your customer with a final notice. ...
Try to make direct contact with your customer. ...
Send a formal letter of demand. ...
Consider using a debt collecting agency as a last resort.

 

[Ayokex]

Recovering money from bad debtor has long being a delicate and difficult task. There are two types of bad debtor, one acknowledges that he owns you money and always apologizing for not being able to pay back, the the knows that he owes you money buy is not ready to payback from his attitude. I always do not like following a legal process recovering my money from bad debtor because I know that I may take time to yield results.

 

[Diamond07]

You can only deal with such person with patience. Some people are terrible paying back debts. They can go any lengthy and still victimize you. If there are detailed documents of the debt then a legal step can be taken

 

[TopSilver]

Sometimes they will even come and take what you bought even if you paid a portion like half. That creates the most issue with some people who may have paid a lot including half but still had to give back the item. This happens when car payments aren't paid. They jack your car but you already paid a good bit so it frustrates people but that's why I personally don't believe in credit.

 

[Adetayo100]

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

 

[Adventurer]

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?

That's why I discourage credit in my business, most times when they are purchasing on credit it's all smiles but when it's time to pay up they aren't taking your calls, which kills the business relationship and results to bad blood.
To recover your money you may have to involve the appropriate authorities.

 

[Obaterof]

This is a very challenging topic because its very difficult to recover money from a bad debtor. Some debtors like the one holding me now are heartless. The means I advise is to go to the police when he is refusing to pay Because you might do what you don't expect later on out of anger and frustration.

 

[jay]

If it's one you sees physically, constant and daily approach. The embarrassment and the disturbance they receive on a daily basis will make them to try so hard to pay.

To those far away, involvement of forces is the best. If not, you will have to leave them to their creator for a touch in the heart.

 

[Adventurer]

Sometimes they will even come and take what you bought even if you paid a portion like half. That creates the most issue with some people who may have paid a lot including half but still had to give back the item. This happens when car payments aren't paid. They jack your car but you already paid a good bit so it frustrates people but that's why I personally don't believe in credit.

Exactly, in business I have adopted a no credit policy and it's really helping me, it is better to have stock with me than in the hands of a debtor.
My company really suffered as a result of this, we were even issued dud cheques.

 

[Psalmsavatar]

The following steps can help to recover bad debt.

1. Contact with a friendly payment reminder. ...
2. Contact with an overdue payment reminder. ...
3. Contact your customer with a final notice. ...
4. Try to make direct contact with your customer. ...
5. Send a formal letter of demand. ...
6. Consider using a debt collecting agency as a last resort.

Nowadays, the debt recovery agency has made the job easier. They laiase with the bank to collect the customer's data and seek permission to authorize direct deduction from the account of the debtor

 

[Xerryl]

Tell him or her 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

 

[Nicklas22]

It's not easy to recover your money from a debtor, it's just to be patient because even if you involve police and your debtor can't even pay if he doesn't have the money
You just have to pray for God to give him money and as well touch his heart to remember to pay you your money

 

[Succjay]

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?

Before lending out your money to people make sure you sign a quality agreement with them and they should bring a collateral that equates the money,also they should get a guarantor who is equal to the task and also has a collateral too

 

[Trojan8]

Try to document the lending process as much as you can. The problem usually states from the fact that people don't document the lending process. So it becomes very difficult for law enforcement agencies to do something about the loan default. If you have it in writing with both parties appending their signatures to it, it becomes easier.

 

[Ifective]

To start with, It is very important to know the kind of customers you are dealing with before even selling to them. For first time credit buyers, it might be difficult to ascertain whether they will be able to pay back in time or even at all or not.
The best thing to do is try as much as possible to avoid selling on credit and if you have to,sell on credit the goods you can afford to lose
Defaulters can be handed over to legal authorities

 

[Victor-t]

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.

One of the way to recover your money is by not giving up in your business, because you can't expect everything to be sweeting, in every business there will surely be some changes that you will surely face, and part of it this one.