A recent survey showed that close to 73% of the population of Singapore has credit cards, and I am sure a lot of people love to buy in credit, too. Similarly, your business’ customers may have taken a lot on credit but could not pay you during this pandemic!
So, what do you plan to do about it? Look at the following tips and you will know where to start:
- Make sure you have the claim in writing along with the concerned debtor’s signature!
Even though the pandemic has been hard for everyone. A lot of the businesses are shutting their shops due to a lot of factors: mounting debt, loss of revenue, forced lockdown, lack of demand, etc.
One more thing, which has added to this, is the mounting debt of the consumers, which they are not being able to pay to the businesses. This has resulted in systematic dissolving of businesses and them getting wiped out in the process.
I know it is inhuman to ask your debtors to pay off. Still, you will need to find a solution to it. One of the most important things, which you should remember is to ensure that all your agreements are well up to date and if there is any revision of terms and conditions, you can easily document it so that in future, there’s no confusion.
- You need to determine the reason – Pandemic or not.
Before you can speak about credit collection to your debtors, you need to understand whether they are in the right state to make payments or not. Empathize with your debtors and make them believe that you are not just a money sucking monster.
Start by finding out the reason why they cannot pay you at this time, and investigate whether it is the pandemic or not. If it is the pandemic, then, you will have to assess the situation and work around it accordingly. You can go for any of the below mentioned tactics or draw up a new debt agreement with lenient payment schedules.
If it is not the Pandemic, make sure you follow ups and communicate the default to the debtors before seeking legal help.
- Make your debts secure with additional securities
There is a way in which your debtors and your business can come to an easy compromise. You can always ask for extra security to cover the debt that they owe you. This will help your debt to be secured too, and if these debtors fail to make the payment, you can even sell the securities.
- You can discount the debt!
If nothing else is working out, and you are looking forward to prompter payments, you can look at providing cash discounts or something similar to ensure that your debtors can settle their debts and you can avail your owed money.
- Get Your Legal Team involved.
If none of these work, you cannot do anything but you will have to ensure that you involve your lawyers, who will reach out to the right authorities to get a head start on the legal compliance required to get the money back from the debtors. However, legal cases and arbitration take time and if the debtor declares bankruptcy, you may not get anything.
You also have one more option, and in my opinion, it will be better for you as it will reduce major headaches. You can contact a debt collection agency as these agencies know what they do and their professional expertise also help you recover your debt.
If you are looking for debt collection in Singapore, there is a list of agencies like Cedar Financial, JMS Roger, Alan & Steiner Debt Recovery, etc. These agencies can help you ease your mind and focus on your core activities, while they take up the mantle and recover your debt. You can also sell your debt to them.
So now, what are you waiting for? Apply these tricks and recover your debts, or just consult a debt collection agency to get it done with ease!