How do you handle business debtors who have refused to pay?

[Etini]

They say debt is part of the business experience. Sometimes, you can't help but incur debts as a business person. The challenging part is that some people would come and get stuffs on credit and find it very difficult to come and pay for those credits. How do you handle such an issue?

Most people would say that you should report to the law enforcement agencies. That is so good but those debtors in my country would take advantage of the law enforcement agencies and frustrate your life with your money. They would go and agree to be paying you very little amounts in little installments till the debt is eroded.

As for me, I would storm your shop or residence with hefty boys and demand my money right away. I won't leave till you give me the money. This approach has been proven to work over and over again.

How do you do yours?

 

[Abigael]

Storming into people's houses to demand your payment seems to violent and might get you into trouble for taking matters into your own hands. But if the method works and it was a huge amount of money paid back, then great.

Personally, I think bad debt in Business should be prevented rather than cured. This is by first setting an principle that you don't give out your goods for credit. If you stand by your principles, most people will respect it and buy rather than take on credit.

Another thing you could do is giving out credit to only those people that have proven capable of paying back. Some people face emergencies such as being unable to withdraw money right away, but they will pay you back as soon as they can. Those people you give on credit should be financially stable with a clear source of income.

Then never lend to someone who defaulted on payment. And only lend a small amount that you can afford to loose.

 

[Mataracy]

Though there is no how a business man will not involve in debt because one much sell in credit to there Custer's no matter how tight things are.
What I can advise the seller is that they needed to be very careful in given out credit to customers because there are some customers that are very stubborn to the extent that ayer they might have collecting he goods or receiving the service they will just disappear without coming back to pay their debt which will in turn put the business in to problem may be now or in the future time.
Every business man should not allow debt to be too much so that it will not affect the business negatively.

 

[Holicent]

It's a common problem for many small businesses. When you have a customer who refuses to pay, the first thing you might do is send them a collection letter. It's a polite way of letting them know that your business is legally entitled to collect their money, and that if they don't pay up, you'll take legal action against them.
But what if they don't respond? Or they respond with some kind of legal threat? Is there another way of handling this situation? The answer is yes — and it doesn't involve writing letters or filing lawsuits. Here are three options:

1. Negotiate directly with your debtor. This can be a good way to settle the debt because it allows you to speak directly with the person in question about what happened and why. It also shows that you're willing to work something out rather than trying to take them to court.

2. Track down assets owned by your debtor and use those assets as collateral for payment. For example, if someone owes you money but doesn't own a car or house (or both), then track down those assets and put them up as collateral until they pay up. This could get expensive if they refuse to hand over their possessions, but it's worth it.

 

[King bell]

The first step in dealing with business debtors who have refused to pay is to reach out to them directly and ask for payment. It is important to be polite and professional in all communications with the debtor. You may need to explain why payment is due, what penalties could be applied, and other potential repercussions of not paying.

If the debtor is unresponsive or unwilling to pay, you may need to take legal action. This could include sending a demand letter or filing a lawsuit. Depending on the amount of money owed and the debtor's circumstances, you may also want to consider negotiating a payment plan or setting up a payment arrangement.

It is important to remember to keep all communications and documents related to the debt and to document all attempts at contact. This can help if you need to take legal action later. Finally, it is important to stay calm and professional throughout the process. This is the best way to protect your business and ensure that you get paid.

 

[Jasz]

If you're a business man, you need to be aware of whether or not your customers have good credit. You can check this by checking their credit report or by asking them to show you their pay stubs and bank statements, if you can before giving them any loan or selling on credit.

If your customers has good credit, then they will likely have a job that pays well. They may also be able to afford higher goods. If they don't have good credit, then they may not be able to afford some kind of loan or taking some debts.

If you're thinking about giving out your goods to someone who has poor credit, it's important that you know what it takes or would cost you. Most applicants won't have any problem with that unless they've had problems with the past customers or clients before then. In all you should be cautious.

 

[Axis]

One of the problems faced by majority of business organisations is the problem of handling debtors who refuses to pay the business what their owe. Businesses cannot regulate their debtors and that is because if they do so they will lose a lot and somehow the business may become liquidated or insolvent. To handle debtors who refused to pay the business what they have owe possible steps the business owner can take is by reporting the matter to the authority. However before doing so he or she must have take turns in letting the debtors to know that he is going to take the matter to the authorities.

From there the matter can be taken to the court where the debtor could be confined of his liabilities, he or she could be jailed or possibly declared bankrupt. In a situation where a court declares a debtor bankrupt, the business who is alleged may have no other choice but to record such situation as bad debts in the business books of accounts.

 

[Carpon]

Bad debts are a part and parcel of almost every business because giving of items on credit is a very important part of business and of course there will be situations when people who you give out to on credit will not pay back at all and some may travel away, death may take some and so on while others intentionally refuse to pay.

The advise I can give to business people about this is that you should be conscious of who you give items to on credit. It will be unwise to carry items and give to someone on credit when you know him or her with the habit of becoming a bad debtor.

So first and foremost, one must he wise in doing business. You must be able to trait someone first before giving him or her and credit service.

Then you should also be good at tracking down
At times you need to be reminding your debtors of their balances.