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Simple but Effective Debt Collection Techniques

simple but effective debt collection techniques

Simple but Effective Debt Collection Techniques

When the payment habits of your clients become less dependable, it’s important to know how to manage them properly.

Issues related to accounts receivables, such as invoice disputes and overdue payments, is sadly something that many businesses have to deal with.

In recent years, it has been reported that around 1 in 10 SMEs have experience with late payments.

There are a plethora of debt collection techniques to recover money that is owed by a delinquent customer or client.

It is imperative to start the collection process as soon as the outstanding debt becomes overdue.

The older a debt becomes, the harder this will be to collect, which is why you should implement debt collection strategies quickly.

Simple But Effective Debt Collection Techniques | Get immediate help from our Experts

If you need help with the Recovery of Debt, our friendly team of Debt Collection Experts is happy to help you today,

SPEAK TO A DEBT COLLECTION EXPERT

What Are the Best Debt Collection Techniques?

We understand how stressful it can be trying to get a client or customer to pay on time. As a result, many businesses may abandon the debt out of fear this will take too long to recover.

Fear not, however, as there are effective techniques that can be used to help collect debts owed whilst not taking up a lot of your time.

Get the client to pay upfront

To prevent this from happening in the first place, an obvious technique is to get the client to pay before you provide your services.

Due to normal invoicing procedures, this may seem like a foreign practice in most business-to-business settings. However, if your client or customer relationships are positive, they should have no issue paying upfront.

Contact the debtor to remind them to pay

Contacting your debtor when accounts go overdue is one of the simplest methods for debt recovery.

Although this is more of a given than a technique, this is still a good way of recovering your money.

Making debt collection calls to your debtors outlining what they owe and when they think this can be paid is usually enough to prompt them to pay.

To stay on top of any payments, it may also help to send a reminder before the invoice due date. This will negate the need for further debt collection techniques to be used.

effective debt collection techniques

Set up a payment plan

If the client is struggling to pay due to financial difficulty, discussing a payment plan with them is a good way of securing payment.

Payment plans will split the full amount of the debt into smaller chunks, which will be paid off based on the requirements of the debtor.

Just like if you were to take out a product on finance, a payment plan will split the full amount of the debt into smaller chunks. This is commonly paid monthly, however, can change based on the debtor’s requirements.

Whilst it would be beneficial to be paid in full, you will have peace of mind that this will eventually be paid off through regular intervals.

Simple But Effective Debt Collection Techniques | Get immediate help from our Experts

If you need help with the Recovery of Debt, our friendly team of Debt Collection Experts is happy to help you today,

SPEAK TO A DEBT COLLECTION EXPERT

Debt Collection Techniques – Instruct a debt collection agency

If your client and customer debts are still left unpaid after trying the above techniques, the next step is to contact professional debt collectors.

This is by far the most effective option for any business that has not been paid by its clients.

Not only will this help stabilise your cash flow, but debt collectors have a greater understanding and experience of how to make debtors pay what is owed.

Federal Management has recovered millions of pounds worth of unpaid business debts yearly since 2004. Throughout our long history, we have developed a business debt collection success rate that is unrivalled across the industry.

All businesses deserve to be paid for the services they provide in good faith – contact our debt collection experts today.