3 strategies to adopt in recovering bad debt

[Augusta]

There are debt that you classify as bad debt when you are not sure if getting your money back from the debtors. Before you write them off as irrecoverable debts you can still try to recover them. Until you have tried all avenues you can't be too much that you can't recover your money.

You can adopt three 3 strategies to try in recovering your debt.

Change the borrower perception: Some people just believed that the lender has more money from where they borrowed money came from, so he shouldn't bother with collecting back the money borrowed out already. You would need to jsve a meeting with these borrowers to enlightened them on the havoc they will be causing it they still refsrs to pay. Let them know you need the money to continue with your business.

Use the law; You can contact a lawyer to help you retrieve your funds. At this point you wouldn't be wrong to institute a suit against the debtors and make claims. it would be as simple as that

seize their Assets: You can get hold of their assets to make them make payments before realeasing to them. you might have to bring in the police You need to stop being diplomatic at this point.

How were you able to recover your bad debt?

 

[Kingsley]

Yes this I indeed very true. I very much agree with your highlighted points. The truth is humans can be very wicked sometimes, some people do these things deliberately. They will approach banks and even individuals for financial help and when they come they will present a very strong read why they need the financial assistance and some will even go ahead to show you the road map as to how they will pay back, by telling you stuffs about some business transactions that they are involved in, but as soon as you release the funds into their account they suddenly become a very hard nut to crack. I have had several experiences with people that has approached me for such assistance and in the end they disappoint in terms of paying back. I had several experiences too when I was working for a microfinance bank.

We do see customers that will approach the bank for loan and in the end retrieving those loans were very tough as we hard to track them down through the meetings leaders and sometimes other members of the meeting do pay on behalf of the defaulter. So I will strongly support that individuals and organizations should adopt the gentle approach and fire bridgage approach depending on the client.

 

[Augusta]

That's the truth getting money back from people that even came Cap in hands to ask for assistance seems the most difficult thing to achieve. The annoying part is where they have this money but they are not still ready to pay. You begin to wonder if people have human feelings or have conscience at all. it can't be easy being a borrower at all that is why I try to give what I can to assist one in a financial situation than lending out my hard earned money because it can be easy retrieving your money.

Sometimes it is good to use total strangers as it will be easy even if it means using the law, you would leave aside sentiments and do the needful. Yeah I know they are people that doesn't just have even when they try enough but even at that efforts should be made.

if a business is in the habit of lending out goods on credit, the. the business owners need to be very careful, because if you are not careful you would ruin your business through bad debt and when once it get to an irrevocable bad debt then collapsing of the business wouldn't take long.