Tag Archives: bad business debt

What to do if a customer files for bankruptcy

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As a business owner, you always hope your customers will be financially stable and able to pay. Unfortunately, some customers will end up filing for bankruptcy. This can be a stressful time, especially if it was one of your more important customers. You may be asking yourself “What do I do now?” or “How do I prevent this situation from getting worse?” Here are six steps to take when you are notified that a customer filed for bankruptcy.

1. Arrange for all goods in transit to not be delivered

Depending on how you deliver your product and conduct business this could be as simple as an email or it could involve a more complicated process.

2. Make sure all future shipments are canceled

Again this could be easier said than done, depending on your arrangements.

3. Check to see if you can submit a reclamation notice on already delivered products

4. Determine how much the customer owes and collect all financial documentation to support this claim.

You should begin organizing all financial documents related to this customer in order to be able to provide sound financial proof of the debt owed to your company.

5. File a proof of claim with the bankruptcy court.

There are many important things to note about this. Make sure you include the required supporting documentation with your claim. Make sure you send the proof of claim by registered mail, with a return receipt requested. You should contact the court to make sure the documents were received after an appropriate amount of time. It is always a good idea to keep duplicate copies of all documents in a secure place in case the court misplaces the originals

Bankruptcy can be a pain to deal with but if you are proactive you can save yourself time and money later down the line. It may seem confusing at first, but the situation will only get worse the longer you wait to deal with it. As always, if you have any questions or concerns contact a lawyer.

3 Ways to Win Your Clients’ Love

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February is the season of love. Wouldn’t you love it if your clients were brand advocates for you?

In the digital age, peer-to-peer recommendations are the most powerful advertising tool available for companies. Walt Disney said it best: “Do what you do so well that they will want to see it again and bring a friend.” By leveraging your existing client-base, you will not only excite for clients, but encourage them to excite others through networking or social media avenues.

By doing this it will grow your customer base, as well as allow for your customers to become more involved with your company; and that means they will be more likely to pay their invoices early. Remember, the less internal time you spend chasing payments the better because time is ultimately money being taken away from the company.

Here are three ways you can win your clients’ love:

Develop a brand ambassador program.

In developing a program, you can pull from three distinct groups of people: your employees, your existing clients and brand influencers. Getting these demographics excited will develop a buzz around your brand and show both new and existing clients that you are a brand people trust. Building trust is essential when securing quick pay clients.


Genuinely engage with your clients and listen to what they are saying.

It is not just about communicating to your clients; you need to be listening to what they have to say to you too. It is important to make your clients feel that they are not merely a means to your cash flow. Gather feedback through surveys, focus groups, social media, sales team observations and social media. This feedback can help your organization become more customer-focused.


Build trust by alerting customers of large scale changes.

You should always treat your clients like valued partners within your company. No matter the size of your company, you should always keep your clients in the know of changes, both positive and negative. Remember, it takes 12 positive service experiences to make up for one negative experience. The more clairvoyant your company is with its clients, the more opportunity it has to build trust.