There are times for many people when you can’t make the payments that you have for one reason or another. This happens for business owners as well if they are in a lull. However, those creditors to which the debts are owed, aren’t always understanding about your circumstances and they simply want what is due to them. If you aren’t receiving payments that are rightfully yours, you might be concerned that you aren’t going to ever see that money. Principle Insolvency is here to share some tips to help you safeguard your interests when facing debt collections.
Tips to Protect Interests When Experiencing Debt Collection
Collecting debts that belong to you can be a nightmare. However, you want to make sure you’re getting the money or payment that is owed to you. Here are some tips to protect your interests:
– Understand Delayed Payment: The first thing to do is ensure that there is acknowledgement that the payment is late. Ask for an explanation for what the delay might be. Attempt to keep an open line of communication and try to understand where they are coming from.
– Set Expectations: You can be empathetic to someone without allowing them to get away with no expectations. It is important that there are clear expectations for repayment. Set some clear deadlines and scheduled payments.
– Different Solutions: Sometimes, there can be a temporary solution put in place while you wait for a full payment. Some people will accept partial payments that can help you get by while you’re waiting. You might also consider reconstructing the repayment schedule.
– Ensure Security for Payment: It is important that you put some security in play for payment. This might look like collateral that includes property, inventory or other personal guarantees. Some might also consider registering a security interest with the Personal Property Securities Act. There are options to protect yourself.
– Open Communication: Make sure you are in constant communication and contact to monitor the progress of the situation. If there are constant delays in the process, you will know that you need to take the next step and involve an involved y practitioner to help with the process. There are legal implications for these situations.
– The Last Straw: When the customer is simply not working with you to pay back a debt, it might be time to take legal action against them. When you are in full fledged debt collection, you will more than likely need an insolvency practitioner to consult with throughout the process.
Insolvency Services in Auckland, Hamilton, Levin & New Zealand Wide
If you’re working to get what is rightfully yours and aren’t having any luck, you can turn to Principle Insolvency to help you get what’s owed to you. We work with insolvent companies and can assist in liquidation as well. We are licensed and highly trained at the services that we offer our valued customers. Call us today!