Moon Twp, PA (PressExposure) August 25, 2009 -- Businesses work hard to sell their products and services. But all of this hard work will not matter if you have customers who do not pay what they owe. Hiring a collection agency is a good way to collect money that is owed to you. However, you may want to take some preliminary steps before taking this step.
First, be careful when giving credit to customers and be sure to explain transaction terms completely. Credit references should be checked carefully and when extending the credit, customers should know what to expect and be clear on the penalties for late payment.
Be sure to send statements and payment reminders to customers promptly and send a series of regular reminders to a delinquent customer before hiring a collection agency. These notices will save money and will prevent the ill will that develops when a third party begins calling to resolve a debt. Also, a lot of delinquent customers may be faster to pay if they know that their credit rating will be hurt if they do not pay.
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