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The steps required to receive your debt collection.


When an accounts receivable goes delinquent, the debt collection process must begin. There are several steps to the debt collection process which can increase the odds of success.

When a debt collector begins the collection process, it is critical that the collector be committed to collecting the entire amount that is owed to you. When a debt collector approaches a collection with this mindset, the chances of a total collection go way up. When a customer makes purchases on credit, they are obligated to pay for the purchase within the terms of the purchase agreement. The debt collector's job is to enforce these terms and receive full payment. At the beginning of the collection process, the tone of the collection calls may be concilatory; however the tone should become progressively more insistent as time goes on ultimately leading to collection of the total amount due.

As soon as the collection process has begun, it is important for the debt collector to make further contacts following a predetermined systematic schedule. Any time a debtor promises to take a productive step in the collection process, the debt collector should make note of the commitment and schedule a follow-up contact on the exact date the next step was to occur if the commitment was missed. Even for those debtors who are unable to make paymentsnow, systematic follow-up calls should occur. These regular follow-ups will tell the customer that the company is taking the delinquency seriously, and they are still obligated to pay the debt. Making this regular statement to the debtor usually puts the creditor at a collection advantage.

An important step in achieving successful debt collections is simply getting the customer to discuss the past due accounts receivable. Once a conversation has begun, this is usually a good indication that the debt will ultimately be paid. The goal of this dialogue is to get the customer to explain the reason for the delinquency. There are many possible reasons for non payment including a dispute, cash flow problems, or numerous other reasons which are unique to that customer's business situation. During the conversation with the debtor, the debt collector may be able to make adjustments to terms to help ease a cash flow issue, or it may become clear that more insistent collection tactics are required. Regardless, the customer should leave the conversation with the knowledge that payment is required for products or services purchased.

Preservation of goodwill with customers is a real goal for most companies with most customers. Even customers who are struggling to make payments today may become excellent customers down the road. A great deal of skill and tact is required of debt collectors to walk the fine line between collecting debt and maintaining good relations. Sometimes hiring an outside commercial collection agency is a way to walk this line.The professional debt collector has the extensive experience in debt collections that enables the skill and tact required to be fine-tuned. In addition, because of the third party status of the professional debt collector, it may be easier to insistently pursue payment because there is no pre-existing relationship between the debt collector and the client. 

ECCM is at your service when it comes to collections as we have a proven strategy that has been working for over 15 years. Our workflow management system ensures that scheduled follow ups occur when due. We build a relationship with the debtor encouraging them to make regular payments until the debt is recovered. Put us to the test, you will not be disappointed.