Mistakes Companies Make Trying To Collect International Payments
As the market becomes more globalized, more companies must begin to work with international buyers to remain competitive and to expand their customer base. While this can help a struggling business as they experience a sudden intake of more customers from another country who are interested in their products, It can also lead to a loss of money in some cases. In international business, it is easy to have miscommunication, which can cause a plethora of issues when trying to collect payment for goods or services. There are four main mistakes international companies make when trying to collect that results in lost revenue for the business.
The first mistake that many companies make is not producing multiple copies of the contract at the time of the transaction. A contract is an essential part of the deal, and if one gets destroyed, there is no proof of purchase or legal obligation. Especially when dealing with buyers in another country, you should be careful in keeping many copies of the signed contract.
Secondly, debtors are often tried through email instead of by phone. While it is definitely easier to contact someone by email, a company is much more likely to get a reply by phone. A client is about ten times more likely to respond to a phone call than an email, but most companies try to reach out through email. It is much easier to ignore and email, especially for debtors who are resisting payment. In addition, many emails are immediately treated as spam, even if the recipient already knows the company or vendor Overall, it’s better to be safe than sorry and just call every debtor that is past-due on their payment. It’s more direct, and it will get the job done.
Another mistake many businesses make is tone. In many international transactions, there is a language barrier that is imminently made visible, but what might not be so obvious is the cultural wall. Things and actions that are perfectly fine in the United States do not fly in other countries, and vice versa. In the United States, conversations can become aggravated or rude towards the customer when frustrated business owners try to collect their funds, and although this isn’t necessarily seen as kind and right, it isn’t entirely frowned upon either. In other countries, though, belligerence is a huge sign of disrespect. Not only can it cause a customer never to pay, but it could also cause other buyers in the country to lose interest. Patience and graciousness are essential, especially overseas, where miscommunication is already more possible and more common.
Finally, companies make mistakes in not acting on their deadlines. If there is no repercussion for not paying, why pay? If a company declares a period, they better be ready to work on it in some way, or the customer discovers that there is no action. The company, more or less, becomes the boy who cried wolf. There can be many repercussions for not paying, be it a canceled contract or something else. A result can be difficult if the product has already been sent, so in some cases, it is better to hold some of the orders until after some or all of the payment has been received. If the product has all been sent and the buyer still won’t pay, the best option might be to go through the government of that country as a repercussion. The buyer isn’t under the jurisdiction of the United States, so there is nothing that the United States can do. Another government, however, must have laws in place to take care of such problems, and these should be accessible to international companies. Just don’t let your demands become the cries of wolf, or you will lose respect in business, and other customers will be less inclined to pay in the future.
These sorts of interactions can cost a company time and money, especially when communicating overseas. Most companies are not equipped to deal with this sort of interaction either– they are provided to produce a product, which is perfectly reasonable. When you’re having trouble like this, the best thing to do is turn to a collection agency. A collection agency is a group that is professionally trained to collect payment. They work with the company to make sure they pay. The best part? If a collection agency doesn’t secure the mortgage, they don’t get paid for their work. There is no risk in hiring an agency; with this fail-safe, hiring this group is all profit. Companies shouldn’t be expected to do what they weren’t trained for; they should be able to rely on professionals for collection from demanding or confused customers. Even internationally, these agencies will work hard to get all companies what they deserve on the world-wide market.