Most small business owners have pondered this question at one time or another. Involving debt collectors is a massive step and it isn’t a decision that should be taken lightly. This may sound strange given we are one, however we are also a small business ourselves, and maintaining good relationships with our clients is paramount. Involving a third party to intervene is basically saying “I don’t trust you anymore” and we all know how important trust is in any relationship. Couple this with the old fashioned perception of debt collectors, along with potentially hundreds or thousands of dollars, and you have a perfect storm of animosity ready to go off. Look, to be honest, the answer to this question is yes, you probably will lose them however you need to ask yourself if this is such a big loss anyway. If someone cannot abide by your terms, and doesn’t value your time, product or service, then you are better off without them, and if they owe you money, they aren’t a customer- they are a liability. Having said all this, no business likes to lose customers and even slow paying ones can be turned- we have seen countless examples of debtor and client reconciling and becoming stronger than ever after the debt was sent to us to collect. Put yourself and your business first, and make no exceptions- change your thinking and your mindset to one of “I am more valuable to them, then they are to me”- after all, they want what you have, which is why they agreed to pay you for it in the first place. The best advice I can give is this- give them a heads up. Give them plenty of chances to pay first, and then one final chance with a strict deadline, otherwise explain that you will be escalating the debt and sending it on. In this final demand, rub their ego- tell them you value them as a customer and would much rather work with them, however you also need to put yourself and your business first and you hope they can understand that. If they can’t, don’t or won’t, then there is literally nothing else you can do but press that button- but press it hard because you will feel incredibly liberated, knowing you did all you could, and safe in the knowledge that your money is now in the hands of the experts. Cheers
“I want to send my customer to the debt collectors, will this mean I lose them?”