If you are operating a tool hire business which offers services to the construction industry, the equipment that you hire out is your most valuable asset. The construction industry and those companies which offer services to it often operate on very tight margins. If for some reason, a client does not pay what they owe or fails to return the tools and equipment on time, it is important that you take immediate action to recover equipment or the money owed. Below is a guide to the steps you should take to increase the chance that the debt recovery will be successful.
Check the paperwork
It is important that you check the paperwork which has been signed. This is important because the contract which authorises the lease of the equipment will contact clauses about when the tools need to be returned and the various penalties and enforcement action that the customer may face if they do not return the kit.
Contact the customer
Construction sites can be busy places, so it is possible that the failure to return the tools is a simple oversight on the part of the site manager. You shouldn't immediately call in a debt collection company when tools or equipment are not returned. Instead, you should send out a reminder by letter or email. By sending a letter or an email reminder, you are building a paper trail which will be useful evidence if you end up taking legal action at a later date. You should avoid calling the customer on the phone as it is harder to say exactly what you want without being sidetracked by the conversation. A letter or email will allow you to lay things out just as you want them in a considered and thoughtful way.
Call in a debt collection agency
If after several attempts at contact you have not heard anything from your customer or you have only received promises about the return of the equipment which have not been honoured, it is time to call in a professional debt collection agency. A company which specialises in construction debt recovery will be able to send out formal letters demanding payment and the return of the equipment. Often, a customer who has been ignoring your letter and emails will be frightened by an official letter from a debt collection company and will then take steps to return or pay for the tools and equipment. If they do not, the debt collection company will be able to assist you in taking further action to recover the outstanding tools and money.
If you would like to find out more, you should contact a debt collection company today.