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Debt Recovery Hints and Tips

Debt Recovery Hints and Tips – Ten Steps to Getting Paid

Recover more bad debts and get paid promptly with these Debt Recovery Hints and Tips.

Have the right attitude.
Stay positive, firm and polite – be clear that you intend to collect the debt as quickly as possible.

Remember – you have a right to be paid!
You may not like to pursue overdue payment because you feel you may lose future business. Customers who persistently refuse to pay are unlikely to continue doing business anyway. Don’t be bullied!

Have a plan and stick to it!
Write your debt collection policy and tactics down – and follow the plan in every case. Click here to join Shark Patrol and use our debt collection timetable template.

Focus on debts that are likely to be paid.
Accounts less than 60 days due are far easier to collect than accounts that are overdue by 90+ days. By focusing on collecting accounts due 60 days and under, you maximise your debt recovery potential.

Know what you’re going to say.
You need to communicate that you are serious about recovering the debt. Calmly identify yourself, make sure you’re speaking to the debtor, state the amount that is past due, and why you’re calling, eg. ‘I need you to make payment today’. Let the debtor respond remain firm in your position and tone.

Maintain consistent communication.
Even with small sums, it’s important to follow communication procedures clearly and consistently, so that your customer knows you’re not going to give up. Don’t shy away from making that call.

Be up front about debt collection costs.
Make sure your customer knows that they will be responsible for paying any debt collection costs, including interest. This must be included in your written contract with them when you commence business, to avoid confusion later.

Get help.
A debt collection agency can be used for accounts that are 60 days or more overdue. Outsourcing debt collection to a specialist third party, such as Shark Patrol, means you can direct your resources at your core business – saving time, money and frustration. Also, along with the many tools, resources and tactics Shark Patrol offers we also have the ability to report your seriously delinquent customers to other members for up to five years – so your predatory customer is stopped in their tracks.

Use the carrot, not the stick.
Offer discounts to customers who pay on time, encouraging them to make prompt payment – and solving your payment problems in a positive way!

Related Topics:

Create a Debt Collection Policy
Always follow a Payment Timetable

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