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What are the criteria to consider when conducting debt collections within the company?

For every company, no matter how diligent the credit analysis, there comes a time when a customer becomes deliquent and debt collection is necessary. No customer ever wants to get behind in paying its bills. The challenge for the credit department is to collect the late payment while maintaining good customer relations. When collecting an overdue invoice, a certain amount of finesse is required by the debt collector. The amount of pressure to be applied to the customer to motivate payment is tricky at best. Some things to consider before beginning the collection process include: 
Answering these questions can help the company develop a winning collection strategy. The answer to the last question can also uncover a red flag of a potential growing debt collections problem which will need to be solved quickly. When a customer has become an accounts receivable problem, the credit department must decide how much time and energy to devote to the problem. One major consideration is how large the debt is. If the customer is large and the debt is significant, the credit department will be more willing to put more time and energy into the collection effort than for a small debt amount. Additionally, for small customers and debts, the credit policy may recommend writing off the amount as a bad debt. One caution about writing off small debts is that over time, a lot of write offs of even small amounts can add up to a large total. A close eye must be kept on these write offs. 

Finally, sometimes a credit department will keep trying to collect an overdue balance even when no progress has been made after multiple attempts. This continuation of the collection effort can become expensive in terms of time and resources wasted. Knowing when to stop attmepting to collect is very important because it can positively or negatively affect the company's bottom-line. Sometimes the decision will be made to turn large amount claims over to a thrid party commercial collection agency. This is a way to control costs while still going after debtors. Below are some addtional things to consider when persuing customer payments:  All of these considerations will influence the strategy that the debt collector will use to motivate the debtor to pay. Each collection should be treated as a unique situation, with a unique strategy. No two customers are exactly alike, and no two debtors are alike either. Develop a debt collection strategy which will motivate that customer to pay, whether it stays in-house, or is sent to a collection agency. 

Outsource your outstanding debt to ECCM and benefit from our special at reduced rates. The special is running until 26th June 2015. Furthermore, you have nothing to loose as you only pay for services should the debtor make a payment. Our process ensures that you are still in full control of the accounts handed to us for collection. We provide access to our system and reports that enable you to monitor the progress of the collection process 24/7. 

Do not delay, let ECCM do what we are best at, allowing you to concentrate on other important matters.