Collect that Debt - Your Business Depends on it

The efficiency of debt collection is the difference between a business that will succeed and a business that closes up.

If you do not have control of your debt collection then you will eventually fail. All businesses that grant credit will be faced with the problem of bad debt at some stage. The best way to deal with bad debt is to have a good debt control system in place.

There are three types of bad debt:

Can pay.
This is where your debtor can pay but will drag out non-payment as long as possible. They do intend to pay but only at the last moment.

Can't pay.
This type of debtor have no means of paying the debt either momentarily or ever. They are not necessarily avoiding payment but do not have the means to do so.

Won't pay.
This type of debtor is the worst. They will try to get away with not paying, know the debt collection routine and will not pay until the matter goes either to court or through a debt collection agency.

The solution to this is to get your money when it falls due or have a collection procedure that does not let your debtors get away with anything. Once you stop chasing the money that is due to you the amount owing to you will increase. The longer you allow a debt to remain unpaid, the less chance you have of recovering it.

There are three ways to collect debt:

By yourself.
This is the least costly method and involves phoning the debtor, sending letters and as a last resort, going to court to have the debt paid.

By a lawyer.
This involves having your lawyer send letters of demand before it is taken further. A fee will be charged dependent on how long it takes for the debt to be recovered. If going to court is involved and your debtor is forced to pay you through a court order your legal fees could be recovered. However if not, then you will have to cover the court costs as well.

Debt collection agencies.
These are firms such as Baycorp, who specialise in the collection of debts. A percentage of the amount collected is taken as a fee. If the debtor does not pay the debt it will usually affect their personal credit rating.

StartRunGrow (http://www.startrungrow.com) is a global online information organization that specializes in creating, developing and marketing business help information specifically with the aim of "making business easier" for entrepreneurs around the world. The StartRunGrow objective is to become a dominant player in the business help arena providing end to end solutions for the millions of small and medium businesses worldwide who continue to struggle daily with the difficulties of starting, running and growing a successful business.

In The News:

A man's medication for alcohol dependence caused him to have a strange reaction to hand sanitizer, according to a new report of the case.

Objects were described as circular, "edge-brightened discs"

Bill Nye the “Science Guy” shared a public service announcement about face masks and how effective the materials used to make them are in a pair of TikTok videos Wednesday.

The world’s rarest gorillas have been caught on camera with babies for the first time, much to the delight of conservationists.

A photographer in Wales took hilarious photos of four goats that appeared to line up outside a closed barbershop, British news agency SWNS reports.

A few days after reports emerged of a 4-inch reptile that was a relative of the dinosaurs, researchers have discovered the fossilized remains of a baby raptor in Alaska.

Native Americans and Polynesians made contact 800 years before European explorers reached the islands, a new study says.

More people could die from COVID-19-related hunger than the disease itself, warns a report from campaigning group Oxfam International.

At the end of the last ice age, Indigenous miners in what is now the Yucatan Peninsula, Mexico risked life and limb — venturing into pitch dark caves illuminated only by fire — to extract a prized mineral, a new study finds.

Skywatchers in the northern hemisphere are enjoying the sight of a newly-discovered comet this month.

Collect that Debt - Your Business Depends on it

Small Business Small Business