How to report debtors to a credit company (pay, taxes, credit report)

[tempoart]

I run a retail & wholesale company. Sometimes, I need to report debtors to one of three major credit companies when my customers do not want to pay me for the products or services they have got. How could I report these customers (debtors) to a credit company if I do not want to use a colloections agency? Would anyone give me a clue? Thanks.

[KevK]

Originally Posted by tempoart

I run a retail & wholesale company. Sometimes, I need to report debtors to one of three major credit companies when my customers do not want to pay me for the products or services they have got. How could I report these customers (debtors) to a credit company if I do not want to use a colloections agency? Would anyone give me a clue? Thanks.

You just have to subscribe to the credit reporting company. If you have a business license of any kind, you can subscribe. I know of even small time landlords that subscribe. This will also give you the ability to check credit before you grant it.

[Paula Lynn]

KevK is correct.

[GreenMachine]

I believe you can also send them a 1099 at the end of the year, so they have to pay taxes on the money they owe you.

Can someone verify this?

[truckingbronco]

Originally Posted by GreenMachine

I believe you can also send them a 1099 at the end of the year, so they have to pay taxes on the money they owe you.

Can someone verify this?

That's only true if you cancel the debt