Five tips for successful debt collection


Published on

Published in: Business, Economy & Finance
  • Be the first to comment

Five tips for successful debt collection

  1. 1. Five Tips for Successful Debt CollectionPosted on December 22, 2011 by Ashley SmithThere are few things as frustrating in the world of business as a customer who won’t pay. Youdelivered the product or service as promised, but the customer hasn’t lived up to their end of thebargain.If you’re striking out time and time again, it might be time to change the game plan. Below are afew strategies you can employ to increase your chances of collecting what’s owed. The rewardsusually outweigh the cost of hiring a debt collection agency by far.1. Stop Doing Business with ThemIt sounds like a no-brainer, but there are plenty of companies that continue to do business withcustomers or clients that aren’t paying up. Don’t enable your customers to keep putting offpayments by continuing to provide them with products, services or supplies. Simply cut themoff. If they need your products badly enough they will find a way to pay.© 2011 Apptivo Inc. All rights reserved.
  2. 2. 2. Keep Your CoolIt’s easy to feel angry when a customer won’t pay. But leave your emotions out of the debtcollection process. You won’t get results by making threats or yelling at your customers. Beingkind, yet firm, goes a long way.3. Review Your Own Policies and ProceduresIt’s a hard pill to swallow, but some of your company’s policies and procedures could behindering the debt collection process. In any case, it never hurts to take a hard look at them. Areyou being clear about payment due dates? Are you sending complete, professional-lookinginvoices? Are you sending payment reminders on a regular basis? If not, customers might nottake your debt collection efforts seriously.4. Work out a Payment PlanSome amount of payment is always better than none at all. If you’re dealing with honest,reasonable customers who just don’t have the ability to pay, try to negotiate a monthly paymentplan. Ask the customer what they can afford to pay each month and bill just that amount. Mostcustomers will be grateful for the flexibility.5. Hire a Debt Collection AgencyIf all else fails, it might be time to call in the professionals. Many customers take debt collectioncalls from an agency more seriously than debt collection calls from your accounts receivabledepartment. Even customers who have refused to pay for months might decide it’s finally time totake care of the debt when a collection agency starts calling.Author: Ashley Smith is a writer at CostOwl.comWe welcome your feedback and comments. Mention them in the comment below. Ex: @Mary hastips on successful debt collection.© 2011 Apptivo Inc. All rights reserved.