The simple answer is "YES" but use it with caution. Let me explain....
On behalf of our clients, we have been using social media as a way of naming and shaming bad payers very successfully for the last few years. To prevent any potential legal claims from the debtor in “naming & shaming” you should proceed with caution and only as a last resort. I would suggest that you only name and shame SME’s and NOT “Big Brands”.
Our success in using social media to recover debts currently stands at 75%. This is to say, when resorting to naming and shaming using social media, it has helped to recover the monies owed in 75% of cases. Admittedly, in many of these cases the debtor has been less than happy at being “named and shamed” and has stated that they will never buy from our customer again. Would you really want them to buy from you again? If they are going to pay upfront for goods the answer is of course YES” Would you want to extend credit to them again though? Me thinks the answer is “NO” Why on earth would you want to do business with a customer that fails to pay you within a reasonable time?
So, in summary:
Social Media is a good way of helping to collect monies owed, but only if used with caution.
If you need any help in implementing a successful naming and shaming policy, please ask.
JamieO "Making Your Cash Flow"
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