Every business has its share of late paying and non-paying customers. Bad debt is a problem for businesses of all sizes. If you’re considering dealing with non-paying clients yourself, think again. It may make sense to hire a collection agency instead. They are experts in debt collection strategies and legal protocol, so you can leave the task to them with confidence.

Collection agencies decide the means of debt collection according to the type of debtor. Some debtors don’t need much persuasion while others do. For many debtors, just receiving a letter from a collection agency is enough for them to pay their bills. However, some difficult borrowers will do anything to avoid paying the debt.

Handling difficult debtors requires patience, skill, and perseverance. Difficult debtors can be easily identified by their attitude. They can claim they don’t owe the creditor any money and try to get out of the situation. If they acknowledge the debt, they will make every excuse under heaven to convince him of their financial difficulties and his inability to pay.

Here are some tips on how to handle difficult debtors:

Get in touch with the right person

Make sure you are talking to the right person at the debtor’s company. Don’t let the debtor refer you to other people so that they wrap you up in an unsuccessful merry-go-round.

Be strong

Make it clear that you expect payment for the products or services the debtor has purchased from you. You have fulfilled your part of the contract by providing the services and goods and you have every right to expect payment for it.

To be professional

Although communicating with difficult debtors can be annoying, as a professional you must remain calm at all times. You must be patient and firm. Adopting a professional and impersonal attitude helps. Do not yell, not even raise your voice, mistreat or threaten the debtor, for any reason.

be focused

The debtor may try to distract you from the problem by discussing personal stories and making countless excuses. He must keep a tight grip on the conversation at all times and bring it back to the purpose of the meeting: collecting payment or obtaining a commitment to pay.

Ask questions

Question the debtor about the excuses given for not paying the debt. Asking a lot of questions forces the debtor to find credible answers, and in the barrage of stories, the truth can slip away. The debtor generally expects lies to be accepted without question. Persistent questioning makes debtors uncomfortable as they have to keep making up more lies to back up their excuses. Avoiding a repeat questioning encourages debtors to settle the payment.

Report debtor to credit rating agencies

Sometimes none of the above measures will show results. This happens when the debtor is exceptionally stubborn. Inform debtors that you are required to report them to a major credit rating agency. Reporting debtors to credit reporting agencies will affect your chances of getting credit for up to 7 years. Sometimes the threat works and the debtor can pay. Otherwise, you must follow the warning with action and report the debtor to the credit bureau.

Litigation

Litigation is the last resort. Warn debtors of your intention to file a lawsuit against them. If they don’t heed the warning and pay, make sure you comply and file a lawsuit. This will make the debtor take collection attempts seriously and will affirm the debtor’s credibility.

Collecting debts from difficult debtors is an unpleasant and arduous task. However, it has to be done. Patience, focus, persistence, and professionalism are required to handle these debtors. Warnings should always be followed by actions to ensure that the debtor takes collection procedures seriously and pays the debt.