One of the most common questions I get asked:
"Based on your experience, why should a small business hire a professional debt collector instead of continuing to chase the debtor internally?"
Are you ready for the cold, hard truth?
Debtors rarely owe money to just one business.
They often owe several creditors, all of whom are competing to get paid from the same limited cash flow.
So - who gets paid first?
Debtors usually prioritize creditors who act quickly and create the most immediate legal consequences.
If you continue sending informal reminders without escalating the matter, the debtor may keep delaying payment because there is no "urgent" reason to pay you.
Engaging a professional debt recovery law firm changes this. It shows the debtor that you are serious and prepared to take legal action.
This moves your debt higher up their payment priority list and increases your chances of recovery.
Rudi Cheu (rudi@rulecolaw.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
The User Content (as defined on Newswav Terms of Use) above including the views expressed and media (pictures, videos, citations etc) were submitted & posted by the author. Newswav is solely an aggregation platform that hosts the User Content. If you have any questions about the content, copyright or other issues of the work, please contact creator@newswav.com.
