Easy Debt Recovery Solutions
The absolute 1st action you must undertake before you look for any debt recovery solutions, is to find out if the debtor can pay. Even the best debt collector in the world cannot get blood out of a stone.
You can draft awesome debt letters and final demands, but if the other person has no cash nor assets, you have just wasted your valuable time. Nothing is ever what it seems. Your debtor might have nothing or has concealed something away for a rainy day.
Your first action the is to get some investigation into their liquidity. There are firms who specialise in researching debtors. Search for companies who are financial investigation specialists. This is step 1 in researching debt recovery solutions. Having your file ready for the investigators will prove useful to all concerned.
After completing this 1st essential stage, you can then decide how your going to get your money back.
Debt Recovery Solutions Step 2
You believe that the debtor either has the ability to pay, zero assets or a reputation to maintain. What are the options available to get your money back or satisfaction?
- Do nothing. Do absolutely nothing and write the debt of to experience. If you have truly little capital or reputation invested – walk away. This is advice you will not hear from a debt collection attorney, agency, or a lawyer. You must not throw good cash after bad unless you have an ulterior motive.
- You can issue a reminder and demand letter. Referring back to your contract/agreement and demand payment. Keep in mind that you need to be wary of what you state is your next action, as you HAVE to take it. You must follow up on your promises to the debtor.
- Court action against the debtor. You must only do this if the debtor has cash reserves or a reputation to uphold.
You would be surprised at how a court order could damage a business’s financial records and ability to borrow. Some businesses can lose licenses to trace because of court orders.
Some businesses may work in industries that absolutely frown upon treating customers unfairly. Expect an expensive defence or a quick settlement.
- Outsourcing your debt collections is one of the easiest debt recovery solutions available. There are numerous businesses out there touting their debt collecting record. Complete extensive due diligence if your debt is substantial.
- Using Resolute Collections. We offer nontraditional methods of debt recovery that can be anonymous if need be. Intense | different | determined
- Repossession of an asset. You should ensure that it has value, can be sold quickly, and is easily repossessed. The assest must be worth more than the cost of repossession.
- Never, ever threaten violence or employ anyone who would. It will come back and bite you. This is what organised crime does, not a creditor trying to get satisfaction.
Roadmap To Success
The only procedure to ensure that you are successful is to have a debt collection strategy and road map. One aspect of this roadmap that many creditors fail to follow is walk the talk. If you have stated that you will complete an action; you must do it. You absolutely must follow through on your promises.
A major element you must have, is a net figure expectation. Debt collection is often a negotiation. Have in you mind your fall back position. This win/win scenario might make it easier to collect your debt.
Have a deadline for 1 stage to the next. From plan A to plan B. It is called a deadline because it is ultimately an enormously significant part of the process. Cross this line and it will be detrimental to you. Deadlines are deadly serious.
Stages To Debt Recovery Solutions
You should never go in with all guns blazing. Always have something up your sleeve that will persuade the debtor to pay. Take 1 step at a time. If the debtor does not respond to this stage go to the next stage in your plan.
You do not jump from stage 1 to stage 4 in one leap, no matter how tempted you are. Nor inform the target of your collection activity what is 2 or 3 stages away. Let them know if they fail this one then we will take it to the next stage.
How To Get Paid
It might sound a bit unusual to discuss how you will be paid. There are several options; there is one foolproof way of not being stiffed. Middlemen can take slices of your money. Debt collectors and repossession agents (as we know from personal experience) steal the cash or item they recovered.
You might want to consider cryptocurrency for your debt payment. It is easy for the debtor to obtain. Your payment cannot be bounced or stolen. You do have to consider the fluctuations in cryptocurrencies. If you were collecting an international debt there will be no currency exchange rate considerations. This means you will have no difficulties moving currency from one jurisdiction to another.
What If Nothing Works
You have used all the debt recovery solutions available and the debtor will not pay you. Most people will give up. Using a Resolute Collections website will leave a lasting impression on your debtor. This might not get your money back, but at least you can have some sort of closure.
Your website can be made anonymous or can have your footprint on it – so that your debtor will understand who it was.
Seriously Difficult Debt Collection
If you have had an injury at work, in someone home or in a car accident. You are going to need a personal injury lawyer. This is not a DIY. Find the best attorney you can. It night cost you up to 40% of your claim; however it is worth.
Make your decision carfeully – you cannot change lawyers midsteam!
Debt Recovery Solutions Comments
If you have any comments or advice on debt collections, we are keen to share them. You might be able to help someone with your story.