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Many businesses now offer options on payments for goods and services that can help customers out. Typically these payment options include weekly or monthly repayments which can be helpful for customers and draw in more business from people who otherwise may not have been able to afford it. As many businesses who offer this service will know, sometimes this doesn’t go according to plan and you, the person owed the money could be left significantly out of pocket.
This is an unfortunate time for both the lender and the borrower in this case and is a situation that can be avoided by taking certain steps to ensure repayments are met. First of all a good line of communication between both parties is important in any case of debts or lending. If a borrower does not feel that their lender is approachable then they may not feel confident enough to let their lender know they are struggling.
Remaining in contact and being proactive when payments show first signs of any problems is a key task the lender should take upon themselves, but unfortunately due to the scale of their business this may not be feasible. With potentially hundreds or more customers it can be hard to keep track of any slight decreases in payments. A debt collection agency will normally be able to help out here by providing a link between you and your borrowers that will inform you of any problems before they become serious issues such as non-payment.
As well as offering communication, debt collection agencies can handle these problems by working in part with both sides to reach a mutual repayment structure. Sometimes this kind of re-arranging of the repayments can be all that is needed to get borrowers back on course, but even in more extreme cases this is a good starting point for your business to exemplify that you have made attempts to resolve the debt. This is often required for further action such as taking the borrower to court.
Unfortunately some debts may become impossible for the borrower to pay back, something many lenders are discovering and so the issue of asset recovery will come up. Asset recovery can be a complicated process and your business alone will need to operate by numerous laws and procedures in order to make sure you get your money back but also can help get the full arrears paid.
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