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As companies grow, they can afford to extend lines of credit to their most loyal customers. In many cases, such arrangements are beneficial to both parties. However, if the debtor falls behind on payments, maintaining a healthy business relationship can be challenging. Here are just a few tips for handling debt collection without destroying your working relationship.

How to Maintain a Good Relationship With Customers Who Have Outstanding Balances

1. Remain Professional

When a client falls behind on payments, it can be incredibly stressful, especially if you need that capital to pay back your own lenders. As a result, you may be inclined to threaten the debtor or lash out. It is critical to keep your cool and remain professional at all times, though. Otherwise, the scorned client might leave nasty reviews on all the leading sites in your industry. Then, you will not only lose their business but also the business of everyone who reads them. 

2. Review the Contract 

debt collectionAs long as you have a contract in place, the law is on your side. Review the terms of this agreement before pursuing debt collection to ensure they are both legally binding and unambiguous. If anything is unclear in the contract, it is essential to reach out to the client and attempt to resolve the confusion before attempting to collect overdue payments. At this stage, it is also wise to reiterate any penalties, fees, or interest charges for late payments. 

3. Turn to a Third-Party

If you want to continue doing business with the customer, hiring a third party to collect the debt will mitigate any tension. Doing so will allow you to continue interacting with the client without having to mention the overdue payments at all. This will eliminate any potential awkwardness for either of you and will ultimately make the customer feel more inclined to hire you in the future because everything was handled with professionalism. 

 

If you’re looking for a reputable third party collection agency that will serve as the intermediary between your business and clients with outstanding debts, turn to Joseph, Mann & Creed. Based in Cleveland, OH, this debt collection agency has been helping companies around the country recover what is rightfully theirs for nearly two decades. In that time, they have established a global reputation for representing businesses with integrity, honesty, and the utmost professionalism. You can learn more about their track record of success by connecting with them on LinkedInTo request a quote for your debt collection needs, visit their website or call (216) 831-5626. 

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