Debt collection for small business owners – The legal implications

Businesses keep a certain amount of funding for bad debts or contingencies. However, too much of everything hurts, especially bad debts. Bad debt collection is a problem for small businesses that need majority of their time focusing on the core functions instead of running after the debtors, while debtors prolong the time with brush off emails and calls going straight to voice mails.  Debt collection becomes a difficult task for small businesses that have limited time and resources for growth and stability.

There are customers or clients that are not habitually debt defaulters but fail to comply with the agreed dates for genuine reasons. While some customers/clients either go by not paying off at all or paying in small chunks causing trouble (with delayed payments)- in both the cases, your business needs to pool in efforts for debt collection which is both time consuming and frustrating.

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