The words “past due recruiting debt” is sure to strike terror in the hearts of many staffing businesses. This is because these businesses lose nearly $25,000 to past due recruiting debt that they can’t collect. This is a large sum that you could have otherwise used to improve your business or pay your employees with. This is why you should take the time to safeguard your business from these debts.
What Options Do You Have Against Past Due Recruiting Debt?
The staffing and recruiting industry have to deal with a number of problems like many other industries. However, the staffing industry is at greater risk due to the nature of their business. This is why these companies need to always consider a number of options in order to safeguard themselves from the danger.
Work With Your Client
The simplest way to make sure that you can collect the money that a client owes you is to work with them. Send out sequential emails and notifications that you’re willing to work with them.
Ideally, you’re going to want to find terms that work for both parties. Most clients are more than happy to work with you when it comes to working out a deal to get the debt paid. It usually isn’t an attitude issue with these clients and it’s very likely a cash flow issue instead. So work with them, rather than against them. However, if your client is being stubborn, inattentive, or simply doesn’t want to pay off the debt, then it may be time to consider the following two options.
Have Your Lawyers Prepare a Lawsuit
If your client refuses to work with you and find terms to settle the debt, then you may want to start considering a lawsuit. A lawsuit is a great way to ensure that you can get what you’re owed at the expense of that client. However, you should ensure that you have your lawyers handle the process. They need to serve as an intermediary between you and the client because you may say something that they’ll be able to use against you in a court of law.
Contact a Professional Collections Agency
An alternative to having your own company lawyers handle the case is to have a third party handle the case for you. In this case, it’s a professional collections agency like AER Collections. This is a great option if you want effective results and very little expense when it comes to collecting a debt. This is due to most staffing and recruiting collections companies having the necessary expertise to handle your case. You get even better results if the company you hired specializes in a specific industry, in this case, the staffing and recruiting industry.
With the constant problem of past due to recruiting debt and backdoor hires in the staffing and recruiting industry, it only makes sense to protect your business. With the right knowledge and tips, you should have no problems dealing with them. We hope that you’ll keep our advice in mind the next time you have to deal with these problems.