How Does Debt Recovery Work?

What Should You Do, When a Customer Does Not Pay?

One of the reasons business relationships break down is often because a customer does not pay a bill.

At first you wonder why a customer, who always paid promptly, is now avoiding payment. Should you risk the relationship by taking action to recover?

Investigate - why is the customer not paying?

The answer to this is that you should first investigate the reason why payment is not being made. Is it the case that the customer is having a temporary cash flow problem caused by a business interruption? Do they just need some time to pay? Is a payment plan the solution?

Understand the reason for non-payment completely.

Possible reasons for non-payment

If the issue is a temporary cashflow problem, then you should come to an agreement as to when the bill will be settled. If the issue relates to the billing cycle, consider altering the due date for payment to a date when the customer has better cashflow at their disposal.

Action plan

However, if you are unsuccessful in reaching a resolution, or if the customer has defaulted on the payment plan, you will need to assess the viability of the relationship and look at the more formal options to recover the debt.

How does debt recovery work? This means commencing court proceedings.

At Nazarian Law, we provide a quick and affordable way to recover your debt. You will work with an experienced solicitor directly to recover all monies due to you, without the need to pay a “middle-man” (i.e., a debt collector agent) nor deal with debt recovery companies.

We will ensure all court costs and legal fees are recovered and paid for by the person who owes you the money.

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