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Debt Collections

Every small business owner knows the stress that comes with clients who don’t pay when they’re supposed to.

The National Debt Collection Act 114 of 1998 regulates the process of collecting debts in South Africa. Debt Collection is when an attorney; a person who is an agent of an attorney; or a registered debt collector collects, on behalf of the client, the capital amount plus lawful interest and the debt collectors fee.

Every small business owner knows the stress that comes with clients who don’t pay when they’re supposed to. It affects your cash flow and your ability to pay your own bills. You should have a formal process in place for when this happens, which it inevitably will.

It’s natural to feel angry at a customer who delays payment, especially when there’s a large amount of money at stake, but remember you can be aggressive in your collection efforts without infuriating the customer. …
Debt collecting is never pleasant, but it’s a must.

Start your collection efforts early. Don’t wait until two months or more have gone by. The longer you wait to begin your collection effort, the more difficult it may be to collect.

Be prepared to take tougher action. Let the customer know that you will initiate collections procedures and even court action if necessary. Let them know that while you don’t want a fight, you consider it important that everyone honors their part of the deal, and you already honored yours!

For more info please feel free to fill in the form below.