Your Debt Negotiation Strategy
Here at NCS we know a thing or two about negotiating terms and conditions governing a contract. From time to time, your customers may request to amend the terms of their contracts. Just look at our recent case study about just such an occasion. This naturally will put you in a delicate position. You are completely in the right to insist on the original terms, but you don’t want to sour a relationship. In this month’s blog, we’ve put together a few tips on handling this difficult process.
Consider What You Have To Lose
As we mentioned, it is your right to insist on the original terms of your contract. It was signed and agreed upon, you’ve probably even planned part of your yearly budget around it. It is also wise to remember that maintaining positive relationships with your customers is a vital part of any business. A heavy handed approach to managing customer relationships may not only drag you into lengthy or costly procedures to collect, but cost you future business. Too light of a hand and they won’t pay, too heavy of a hand and they won’t come back and they certainly won’t refer anybody!
There Is Always Room To Negotiate
While a signed contract may feel safe, secure, and ironclad, the fact is that that’s never quite true. Take our recent case study - linked above - for example. The customer had experienced some employee attrition and suddenly, the original terms didn’t make sense for them. As a result, not only was the original $170K balance in jeopardy, but there was a risk that to collect meant going through litigation. This would of course incur even more costs!
Consider Engaging A Third Party Accounts Receivable Management Partner
An impartial third party partner will often be in a better position than an internal team to bring the necessary leverage and equity needed for a timely positive remedy. A third party like NCS imparts the processes to instill a calming influence, work effectively, and the experience to settle matters in a way that is amicable for all parties involved.
