Making the decision to engage a debt collector and kick of a debt collection process can be nerve wracking, and knowing whether or not you’ll be successful in your endeavours to get paid can be uncertain.
Below are some tips on how to increase your chances of being successful in the debt collection process…
Plan ahead
Make a decision now of how you will deal with debt collection, if the situation arises. It shouldn’t be an emotional decision or process – just a simple, business-as-usual task.
Take the emotion out of it
Debt collection shouldn’t be scary or anxiety provoking. A clearly defined strategy and process (before you get to the point of debt collection with any of your clients) will help diffuse any emotion around debt collection.
If you’re a CreditorWatch Collect user, everything you need to start the process is there – your paper trail and client history. This means there are no new forms or applications to engage a debt collection agency – it’s as simple as the click of a few buttons.
Choose wisely
Debt collection agencies get a bad rap. Not all of them are known for their reliability or client communication. But there are certainly some great ones out there.
Through our Collect service, we make sure you’re partnering with a reliable debt collector and that they will be in communication with you about your debt recovery on a regular basis.
Act swiftly
Start the process as soon as an invoice falls overdue. Send email reminders and make phone calls to try and resolve issues in a timely and consistent way.
Most times people fail in getting their debts back, the debt was passed on for collection too late. The debt to collect is just way too old. And the business in question may not even be in business anymore, or you may not be able to locate them.
From automated email reminders, to follow up phone calls, to debt collection – you can do it all in CreditorWatch Collect. This means you can follow best practice from day 1 to day 100 and beyond with zero stress or effort.
Check your T&Cs
If you have a good set of terms and conditions to start with, you will have a clause in them to ensure you can on-charge any legal or collection fees associated with your clients’ business.
For example, if you’re owed a $10,000 debt, and there is a $2,000 collection fee on it, the debtor will be asked to pay $12,000. This keeps you clear of extra charges and costs.
Cloud-based receivables management software like CreditorWatch Collect makes it easy for any business to follow a great debt collection process. Care to try?
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