how do recover money from vendors or customers and not spoiling relations.
*Make sure that your contract clearly states the payment terms - including the actions that would be taken in case of delays.
*Enquire about the payment through SMS/Email/WhatsApp messages. Invite the customer or vendor to discuss the reasons why the payments are getting delayed.
*Follow up with reminders - attach the invoices and also proof of previous communications.
*Call them up personally. But listen what they have to say and offer alternative payment methods, like installments with interest, or partial payments.
*You can also offer to waive off interest or give some percentage discount if a certain lump-sum amount is paid. This may reduce your profit margin, but will at least help your cash-flows.
*For the balance amount, offer installments.
*If nothing works out, hire a third party recovery agent to collect your payments. This sends a clear message that you are serious about getting your payments on time.
*Legal action should be the last step - if all the previous attempts have failed!