Don’t let debtors get you down or slow your productivity. Instead, focus on creating a plan that keeps you on top of debt collection and shortens the time a customer is in arrears. To collect a debt without ruining the relationship, follow the helpful tips below.
Create a plan
A failure to plan is a plan to fail, and only twenty percent of all credit departments have a formalized plan that details the defined goals of their department. Your plan should include role delineation and responsibility assignments, as well as a clear dispute resolution procedure.
Use great software
Great accounts receivable collections software will make collecting the debt you’re owed much simpler. By managing your entire debt collection processes, ARM software will make you more efficient and effective, and allow you to accept payment quickly online and via mobile. You’ll also be able to perform credit and risk scoring.
Online payment options
Allowing debtors to pay online will not only speed up the debt collection process but may prevent it entirely. When individuals have an easy, hassle-free way to pay, they tend to actually do it.
Whether you send your messages electronically or through the mail, keep outbound messages consistent. Each message you send should include a reference to your policies and procedures, as well as your expectations. Ensure that you keep a paper trail of all communications between you and your debtor in the event that things take a more serious turn.
Be firm and flexible
Just because a client isn’t currently on good terms with you doesn’t mean that empathy goes out the window. Work with your customers even if they’re delinquent—it takes much more effort to acquire a new customer than it does to keep an old one, just because they may be going through a difficult time does not mean you should ostracize them against future purchases.
Always be a professional
When addressing collections and debt, you are still representing the face of your business. How you handle yourself as you collect the debt will give individuals an opinion of your company that they may share with the outside world, and friends and family. Don’t give them an opportunity to speak badly about you or your conduct.