In the simplest form, business is a mutually beneficial exchange between two people. One party provides products or services to satisfy needs and wants. The other party, in return, pays the first party for meeting their needs/wants. Ideally, this is how things should go – smoothly and with only the slightest hassle. Unfortunately, no matter what business you operate, there will be times when you need to learn how to handle debtors.

The need for this arises because, whether you like it or not, there are people who would much rather enjoy the benefits of your services without paying for it. To keep yourself from going bankrupt, you need to be able to manage these types of people properly. After all, the sole aim of a business is to make money. So, how do you handle debtors effectively?

1. Make your payment terms as clear as possible in writing

When you provide services to an individual or a group of individuals on credit, make your payment terms crystal clear to them. You can’t just stop at emphasizing it over a phone call. Put it in writing and have both parties sign to it. If the amount is a particularly huge sum, you could get a lawyer involved. The last thing you want to do is to make them believe that the money doesn’t mean that much to you. With well-defined payment terms, it becomes virtually impossible for the second party to deny your agreement.

READ MORE: https://valourdigest.com/five-tips-to-help-you-handle-debtors-effectively/