When running a business that does B2B and therefore needs other businesses to survive, one of the worst things that can happen is ending up with unpaid invoices. Indeed, on the one hand it can be very problematic for your cash flow and thus put you in trouble, but on top of that, initiating a procedure for the collection of debts can be very long and expensive. In this article, I have listed the good reflexes to take if you ever find yourself in such a situation.
Among the recovery procedures, there are mainly three.
The mistake of many start-up companies is to wait long months to collect all their debts before reacting and looking for new, more reliable partners. If it is true that managing your personal finances is not something to be taken lightly, I nevertheless recommend that you act quickly by making calls for tenders while there is still time. Because even if the resumption of commercial transactions remains possible with the ex-debtor if there has been an amicable arrangement, it is better not to count on it too much.
If I advise you to act early, it is also so as not to choose new debtors in haste. Take the time to analyze each file so as not to repeat the same errors. For example, beware of companies that negotiate very little or not at all, this could indicate that they do not intend to pay from the start.
There are countless companies and individuals who have decided to take legal action against bad debtors. When you’ve never been in default yourself, it can seem incomprehensible and you feel like you’ve been fooled, hence the desire to take revenge and fight it out. However, keep in mind that in the event of illegal action (use of threats or other unsavory schemes), everything could turn against you.
Not only do you risk not getting your money back, but we can legally sue you! So take your troubles patiently and assume that your debtor is probably not in a comfortable situation either.