Owed Money? Here’s What You Should Do

If you’re a small business owner, then you have probably already had your fair share of financial headaches. It can seem that dealing with money matters takes up the majority of your time. From banks being slow to release your funds to money going out as soon as it comes in, money is just one of those things small business owners have to deal with. There’s another issue, though, that can have much more damaging an effect on your company’s prosperity than just bills, and that is: when someone who owes you money is avoiding paying you. When that happens, you can find yourself in a real financial mess, which is even worse because it’s not your fault. Here’s you should be doing.

Talking with Them

First step’s first: you have to talk with the person or organisation that owes you the money. You should do this in writing, and keep a copy for yourself, too, as it’ll useful to be able to produce these type of documents should the situation escalate. It may well be that you’re on the same page – you will be paid – but that it’s just a matter of time until it actually happens. Some organisations have different payment policies (bills paid once a month, etc), and it might not be anything to worry about.

Your Suspicions

However, that doesn’t mean all your money chasing time will yield positive results. Sometimes, you’ll have a sense that you’re unlikely to get paid. This will usually come about from the person you’re trying to get money from avoiding your phone calls or failing to respond to your letters and emails. At this stage, it may be worth soliciting the services of asset tracing companies to determine whether they do in fact have the money to pay you. Be persistent, even if you are fobbed off for a spell: you’ll get them on the phone eventually, and if you don’t then you’ll know it’s time to take it to the next level.

The In Between People

There’s a difference between a person who won’t pay and a person who is disputing the bill in the first place. When this occurs, all the talk in the world is unlikely to convince them to pay up the cash. At this stage, you’ll need to get a mediation service to act as in between agent for conversations between the two of you. It might just be a small matter that requires small conflict resolution before you can move on. This is especially useful for matters that don’t involve masses amounts of money.

Through the Courts

If you know from your third investigations that the person who owes you money does have assets, then it might be time to take the matter to the courts. By this stage you’ll know you have a strong case – and most likely, so will they and they might pay up before heading to court. Of course, there’s a chance that you’ll lose the case, so think carefully before going down this line.

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