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Four Ways to Prevent Excuses for Missed PaymentsAs a finance company, you are familiar with the common excuses that clients give when they miss a payment. They may admit to their mistake and say that they forgot or did not have the money to make the payment that month. Other clients may blame your billing process or circumstances that were beyond their control. Rather than tolerate the excuses, you can create a billing and payment process that prevents them. This way, clients can blame only themselves when they miss a payment. Here are four fixes to common excuses for missed payments:

  1. Multiple Ways to View the Bill: Clients may claim that they could not find the bill, whether it was losing a mail copy or accidentally deleting an email. This is a flimsy excuse because the client could have asked you for another copy of the bill. There is even less of an excuse if you allow clients to pay bills through an online account. Encourage clients to register on your site, where they can always view their bills and make easy payments.
  2. Tech Support: Some clients have little experience using a computer to create accounts and pay bills. A process that seems intuitive to you may be confusing to them. If they complain about not understanding your online system, offer to walk them through the set-up process and explain how they can use their account.
  3. Multiple Payment Methods: Allow your clients to pay through your website, by mail, or in person. Some clients may not have a credit card or checking account that they can use for online payments. Other clients may consistently pay on time as long as you do not force them to use one method of payment.
  4. Easy Communication: You want your clients to tell you in advance if they will not be able to make a payment. Good customer service will encourage clients to contact you. Have an efficient phone system that allows them to quickly talk to one of your representatives. Reply to emails within 24 hours. Do not give your clients the excuse that you were too difficult to communicate with.

Contact a Chicago Debt Collection Lawyer

The reason a client missed the payment is not as important as knowing when your client will repay you and whether missed payments will continue to be a problem. You may be forced to take legal action if a client cannot or will not meet its debt obligation. A Chicago debt collection attorney at Walinski & Associates, P.C., can help you negotiate with clients or take them to court. To schedule a consultation, call 312-704-0771.

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Nuances of Business to Business Debt CollectionBusinesses are some of the most lucrative clients for finance companies because they need loans to purchase goods or equipment. A well-timed loan can help a business eventually turn a profit and lead to long-term relationships with financiers that benefit both sides. However, businesses are also liable to default on their debts, which may be substantial depending on how much they needed to purchase. Finance companies must use their best judgment in determining how aggressive they should be with business clients.

Personal Communication

Hiring a debt collection agency or taking a commercial debtor to court may sour the relationship between a finance company and a business. Before taking those steps, the creditor can try to settle the debt on a more personal level by:

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