By Angelo Ioanides
Few things in business are more awkward than having a friend as a debtor who’s not paying. The obvious dilemma is which to put first… your business or your friendship?

Now while you might feel stuck between a rock and a hard place the truth is turning a blind eye to the debt is actually the greatest threat to your friendship. Imagine the impact on your friendship if that un-recovered account in some way contributed to your business hitting the wall.

Hence, by not repaying their debt your friend is the one whos setting both your business and as well as your relationship up to fail.

Be that as it may it doesnt make it any easier asking for your money back. However, there’s a simple yet powerful strategy to recover your money whilst simultaneously preserving your friendship.

So what is this strategy? Simple. Either in person or in writing say something along the lines of…

“You know how much our friendship means to me and that I would never do anything to jeopardize it. Seeing as my business is going through a rough patch at present the truth is if I don’t ask you to settle your account I’d be putting my business and in turn our friendship at risk. And because I’d absolutely hate for us to fall out over money I’d really appreciate it if you would square me up by the end of the week.”

As long as you say this calmly and empathetically no true friend would begrudge your request for payment.

Having stated your truth, one of four things will happen.

Obviously the best outcome is for your friend to pay what’s owed. Not only is this good for your business it also demonstrates your friendship is actually worth something.

The second possible scenario is that your friend confesses that they’re so strapped for cash that they don’t have the means to settle their debt. In this instance while it’s fine to feel sympathetic the harsh reality is they’re putting themselves before your friendship.

The third possible scenario is where your so called friend either tries to pull a guilt trip or instead blows a fuse. In either case they flat out refuse to pay. In so doing they’ve confessed that your friendship doesn’t mean anything to them and that in fact they’ve only pretended to be your friend so they can abuse your good nature. And while this may be painful to hear at least you now know where you truly stand.

And the fourth possible outcome is that they promise to pay but subsequently don’t. Once again by breaking their word they’ve demonstrated that your friendship is worthless. What’s more they’ve also revealed that they’re also in serious financial strife.

If you find yourself in any of the final three scenarios it’s clear you’re not going to recover your money on your own. Because you’re now dealing with an emotionally loaded debt you really have no choice other than to refer the debt to a debt collection agency.

Having accepted the fact that you need outside help all that remains for you to decide is how you want to handle your relationship.

If you do want to try and preserve your friendship then you should seek out a debt collection agency that has what is known as a “Velvet Glove” phase of recovery. Such an approach opens a window of opportunity whereby the collection agency works along side your debtor in a respectful, assertive yet inoffensive manner. In this 30 day window neither you nor your friend will be penalised with collection agency commissions. Using this approach, if they are a true friend they’ll pay up and everyone will be happy.

If however despite this “Velvet Glove” approach they continue to default on payment OR they commit either of the last two scenarios above then they’ve forced your hand to take immediate and aggressive steps to recover your money. Let me be very clear… under these circumstances they’ve declared your friendship over and they really don’t care if you and your business sink. As such you need to hit them hard with whats known as an “Iron Fist” approach whereby your debt collection agency goes straight for the jugular.

Sure, this all might seem drastic but the cold reality is if they were a true friend they wouldn’t ask you to risk both your business and your friendship over money. Bottom line: They’ve set you and themselves up to fail and you’ve done nothing wrong by asking for your money back. – 23596
About the Author:
To help you recover unpaid debts from friends who won’t pay The Debt Doctor’s debt collection blog reveals where to find debt recovery agencies that provide “Velvet Glove” and “Iron Fist” debt recovery.