Debt Recovery Solutions That Worked for Us

by Melissa
(Illinois)

Our small business had a lot of problems with debt recovery. Unpaid bills seriously threatened our ability to stay afloat.

What we found worked best, after the initial cycle of billing, was to contact our debtors directly and work out a person by person repayment plan.

Many of our clients could not afford the full payment at the time of service, but an individualized payment plan with a smaller monthly payment and a handling fee was easier for them to pay and meant a more consistent payback.

The debtors who defaulted later had still paid some, which meant we had more liquidity than if they had defaulted entirely. We also found that if we made our monthly payment plan small enough and included paper or electronic statements as reminders, the debt was more likely to be paid over other debts our clients had incurred.

Given the economy, we were glad to take the small consistent amounts of money over no money and it gave us the breathing room we needed to stay in business.