Basic Debt collection Techniques are effective and can save you money, time & stress.
Bad Debt can threaten the survival of a Small / Medium and/or Large Business if not effectively dealt with. When your Debt Collection Techniques do not work effectively, don’t waste time and consider a collection agency. Collection agency fees can be expensive and frequently require large, upfront fees prior to beginning any collection efforts. However we don’t have fees unless we collect, and we have affordable rates.
To help you here are a few very simple, easy techniques that debt collectors use:
- Information is Vital (Keep them updated):
Collectors spend far too much time on gathering information from multiple sources when all off it could be in one integrated system where the entire team can access it.
- Focus on your priority client accounts:
If a cash flow is your concern, its important to focus on your efforts on those accounts that demand attention before all others. These can be accounts that have orders on hold due, have a long list of broken promises, that have large amounts outstanding, etc. After you’ve done what you can there, tend to any other accounts that may need an additional reminder about a payment.
- Have effective communication with your clients:
How do your customers prefer to be contacted about invoices? You may find that certain people are more responsive to email while others are most apt to talk with you on the phone or respond to a letter. If you make notes about how each customer prefers to be contacted, you will know the best and effective way to get in touch with them if an invoice goes unpaid.
- Spend sufficient time on problem customers and their queries / disputes:
If you can eliminate some of that clerical and focus on your time and energy on delinquent accounts, settling disputes and learning how you can avoid in the future, those 8 hours you spend at the office are going to be much more productive and the metrics will show it.
The law requires that disputes are settle in 90 days of becoming apparent to the company, or the company can lose out on money. Therefore it’s imperative you focus on your efforts on any open disputes.
These debt collecting techniques are available to just about every type of business. Unfortunately, every business will have past due account receivable debt that can’t be collected no matter what method you use.
Each business will have to decide as to what type of debt collecting techniques they want to use.
Good Techniques will help you to ensure that your business is successful.