8 Tips for Increasing the Chances of Collecting Someone’s Debt

Running a business means keeping track of payments and debts to remain profitable. Unfortunately, when customers fail to pay a bill, it results in costs for the company. Discover eight smart tips for increasing the chances of collecting someone’s debt to boost the bottom line.

Hire a Professional
One of the easiest ways to collect debts is to hire a professional to communicate with the debtors. Debt Recovery Services understand the legal ways to collect debts and help companies recover monies owed. Businesses benefit from an expert team of collectors who know how to get the job done right for a nominal fee.

Maintain Accurate Records
Accurate records are crucial to proving a debt and the amount of interest owed to the creditor. Invest in an automated system to keep track of payments and debts in real time to keep a finger on the pulse of corporate finances. If customers dispute a debt, businesses have evidence of the money owed to pursue the action further.

Remain Positive
Making threats and yelling at customers often results in less-than-satisfactory results. Remaining positive during the initial collection actions establishes a positive relationship with customers, encouraging them to pay the debt. Conversely, negative interactions deter customers from contacting the company to pay debts and do business in the future.  In addition, those types of efforts can result in poor word-of-mouth advertising.

Be Direct
Often, customers try to offer excuses and stories to avoid paying a debt or get more time to cover it. Be direct in all dealings to establish a payment plan even if the customer cannot pay on a specific date. Offer to schedule future payments and plan future communications to stay in touch with debtors and give them realistic payment options.

Use Several Channels
Use more than one channel to reach out to customers that owe the company money to remind them about the debt on an established schedule. Also, using various channels ensures the customer can respond using a medium that makes them most comfortable. For example, reach out via email, snail mail, phone calls, and texts to stay in touch and encourage payments as quickly as possible.

Follow All Laws and Regulations
There are applicable laws and regulations designed to protect the consumers against unsavory practices, such as harassing phone calls in the middle of the night. Always be aware of regulations and follow them to the letter to ensure the debt will be paid rather than disputed. Doing the wrong thing can mean consumers get away with the debt based on poor practices.

Assign a Team
Companies should have a designated team to keep track of debts and collect them. Have skilled professionals contact debtors to initiate meaningful conversations that result in payment rather than distress.

Call the Big Accounts
Keep the big accounts on-call so they recognize the urgent need to make payments. Try to establish a payment schedule to take long-overdue accounts out of the red.

Collecting debts is challenging but makes a difference to the profitability of the company. Work with a team of debt collection professionals who understand the regulations and protocols to follow when pursuing debtors. The right approach means the difference between getting payments from debtors or facing significant losses that harm the business’ overall financial picture.

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