Most businesses need a place to store their inventory or run their business. Therefore, landlords are essential in keeping a business running properly. You supply business owners with a space to rent. However, what if these entrepreneurs are falling behind on their rent payments? How do you approach them? Are there any other options for collecting what is due? Southwest Recovery Services has outlined some strategies for more effective debt collection.
Prepare Yourself Mentally
You need to be committed to getting paid, because late paying business owners will have all kinds of excuses. Stay firm, be friendly but professional. You want to be clear about the due dates and hold them to it. Don’t allow their excuses to pile up and leave you empty-handed. The worst thing that can happen is letting them walk all over you.
You should have a system in place that tracks receivables and check it at least once a week. Then, follow up with customers that are 3 days, one week, 15 days, etc late. Be consistent with these follow ups to demonstrate that the unpaid bills haven’t gone unnoticed.
Send a Reminder Letter
Letters are a polite way of reminding renters of their rent payment. In fact, we even recommend sending a letter before the payment is due. You can also send one if the payments are late. Include in the letter that they should contact you to discuss a payment option.
Make a Phone Call
If it’s been 30 days and you have not received a payment or heard from them, give them a call. It’s a lot harder to dodge a phone call than a letter.
Keep Your Composure
Collecting unpaid bills can be frustrating, especially if you are dealing with more than one renter. But don’t let these negative emotions get in the way. Treat your renters with professionalism, and figure out a course of action. You don’t want to ruin your reputation or relationship with them, but you also don’t want to sacrifice your cash flow. Assess how valuable the client is to you and how likely they will repay you. Come up with a plan to recover the debt.
Take Legal Action
Have your lawyer write a demand letter for payment. Renters may not listen to your letters and phone calls, but they often feel threatened by a demand letter.
Hire a Debt Collection Agency Like Us
The most efficient and cost-effective solution is to outsource to a debt collection agency. Our agents are properly trained to handle all types of clients and scenarios professionally. We use every available strategy to collect, such as:
- Oral and Written Communication
- Customer Service Quality Standards
- Effective Negotiation
- Skip Tracing Techniques
- Credit Reporting
- Legal Action
Team Up with Southwest Recovery Services
If you would like to learn more about our debt collection services, get in touch with us today. We operate on a contingency basis, which means that we don’t get paid until you do. That said, we try our best to recover what is rightfully yours.