There was an unpaid invoice and after the actions of a debt collection company you could cash in all the unpaid amount and interests plus costs.
The actual Question is: can you still trust to this customer, he is reliable can you again send him goods?
Fact is that a high percentage of the firms paying only after intervention of a collection company, are bankrupt within 12 months.
The percentage is between 20 and 30 %.
If you only check the statistics you will find out that the risk of not payment is 20 to 30 times higher with this kind of customers as with a normal one.
The conclusion is
– Not to deliver your goods or Services to this kind of customer cannot be false but it’s not an obligation.
– One solution is to ask for a down payment of 30 % for the first delivery “after” to check if the problem was an accident or a very serious one.
– To ask for a complete pre-payment is not efficient as long as you are in competition Market.
– But you have to be careful and you have to get extremely fresh solvency information’s about this customer.
– And you should manage this customer in a special reminder organization acting quicker and in a different way than for your other debtors.
For customers who never paid their small invoices, for customers paying only a part of the unpaid invoice, for customers needing a long term moratorium to pay their invoices there is only one solution: forget them.