Debt collection: not a process many business owners look forward to. But sometimes it’s necessary, and when it is, you’ll get to the end of the process more smoothly if you know how to start the process well.
So, our next blog covers the how-tos of kicking off the debt collection process…
HOW TO: Send invoices to debt collection
This is where you need to set up a process that causes minimal angst and uncertainty, and maximum efficiency and results.
Identifying debts to be passed onto debt collection
By now you’ve (hopefully) been following up overdue invoices with emails and phone calls to the client(s) in question. So as you approach the 90-day-overdue mark, you should be thinking about engaging a debt collection agency.
If you’re using the CreditorWatch Collect system, you will start to get notifications at 90 days to suggest that it’s time to consider debt collection.
If you’re using the CreditorWatch Collect Call service, your Receivables Specialist will ascertain whether you should go to debt collection (and when) based on their experience with invoicing and trying to obtain payment from the debtor. (In our experience, we typically know by the second or third phone call whether a customer genuinely wants to pay.)
Tools & technology
This is where the utilisation of technology comes in. Like other important business functions, it’s important to use the tools best available to get results and save time.
The CreditorWatch Collect system has an easy peasy debt collection service built in called Collect.
To send an invoice to Collect, you simply select the invoice in CreditorWatch Collect, and click ‘Move to Collect’. The reason it’s so simple is that you’ll already have a complete history saved in the system (ie. invoices, statements and emails), so there are no new forms or applications to fill out.
Ultimately, we can help you get to the bottom of it sooner.
Engaging a professional debt collector
Use a professional for debt collection, like you would for other core business services. Getting this support will help you get the job done faster, smoother and in a way that you know is correct. Then you can keep your time and mind focused on the good stuff – like what drives you in your business.
We’ve found that there is often a lack of trust around debt collectors. Many businesses have questions around the effectiveness and reliability of collection agencies. So choosing wisely is paramount.
At CreditorWatch Collect, we carefully select partners that have received a wide range of positive reviews and have proven they get results and have exemplary client communication. So if you’re kicking off the CreditorWatch Collect ‘Collect’ process, you know you’ll be a top priority for the collection agency you’re working with, and communicated with on (at least) a weekly basis.
Care to try CreditorWatch Collect’s Collect?
(or request a consultation and we’ll tailor a collection strategy to suit).