Law firm for debt collection in Israel

Law firm for debt collection in Israel
Ineffective collection is a common and serious problem for many businesses in Israel, especially small and medium-sized ones.
Situations in which businesses and service providers supply products, goods, invest money in the production and payment of salaries, pay VAT and finally find themselves sitting and waiting for money not to arrive are common and make it difficult to properly manage the business and cash flow, and the balance of expenses and income.
Law firm data shows that ineffective collection is a major and primary source of cash flow and credit crunch problems among small and medium-sized businesses.
How to deal with customers who do not pay:
Israeli businesses that sell on credit transactions with a 90-day spread and charge an average of 110 days, increase their credit requirement and needs by 20%.
When it comes to a small business whose credit limit is NIS 500,000, the result is an increase in the credit limit by NIS 100,000 and without a doubt this is significant damage that may accumulate and swell over time.
Most business owners place emphasis and invest most of their efforts in delivering a service or product in a quality and professional manner, but find it difficult and complicated to collect the payment and find themselves forced to pursue the customer in order to get value for the services or products they provide.
Principles and tools that will help business owners make smart and efficient collection
Reference to collection as a value
Many business owners and executives tend to treat the collection process as a marginal matter and feel uncomfortable asking and demanding money they deserve.
On the other hand, when the owner or manager of the business treats the issue of collection as an important and central value and does stick to the matter, then the employees and customers treat the issue in the same way and understand the meaning and importance of receiving payment on time and in order of payments.
Appointment of collection officer
Any business owner or service provider, small or large, well appointed someone on his behalf to be responsible for collecting payments. In addition, it is recommended and important to establish internal monitoring, supervision and reporting procedures and to hold a weekly meeting with the participation of the owner or manager of the business or company with the person in charge of collection, often in the presence of a lawyer.
When there is a permanent professional who is responsible for collecting funds and managing cash flow, the business owner will be free to engage in the day-to-day management of the business and less in the day-to-day collection activities.
Arranged collection procedures
Every business and service provider is advised to prepare clear and orderly collection procedures according to the nature and scope of its activity.
According to the procedure, it will be decided and determined when to send a reminder to the customer, at what stage to contact and call him, when the customer is no longer allowed to purchase products or receive services and finally when to act in legal ways due to non-paying customer and collection problems.
Clear and orderly procedures will avoid situations of inconvenience that arise when it is necessary to request and pursue the payment as well as create order in the collection system and improve its efficiency. There are situations where it is better to lose and lose a customer, who in any case, does not pay and thus saves a waste of time in dealing with a non-paying customer.
Sending reminders
Experience shows that customers also need reminders from time to time and there are several ways to remind customers pleasantly and calmly that the date of payment is approaching.
After sending the invoice that includes a demand for payment, it is advisable to contact the customer to make sure that he has actually received it and that he knows in what form he is supposed to pay - bank transfer, check, etc. As the payment date approaches, you should call the customer who is supposed to transfer the payment and check with him how he prefers and is comfortable with paying. If the customer is interested in paying by check - a check should be found out in front of him whether he prefers to send the check by mail or he prefers to send the check by courier.
There is another option which is to coordinate and schedule an appointment towards the date of payment and when adjusting the date of the appointment, it is possible to mention that they will write and prepare the check that is intended for you.
It is recommended, in any case, to send to customers, once a month and especially to customers who are given long-term credit, a list of debts and in this way it is possible to maintain continuous contact with the customer so that he knows how much he is supposed to pay each month.
Keep calm
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