In our previous posts, we’ve talked a lot about the detrimental effects that an inefficient and unorganised debt collection process can do to a business. Wasted resources, poor cash flow, and productivity loss are only a few of the negative impacts that we’ve highlighted.
But today, we’re going to take a more positive approach and talk about the different ways a business owner can turn things around and actually improve their debt collection process.
So, here are a few simple but effective steps you can take to get better results from your debt collection procedures:
1. Assign a point person for debt collection
You need to have someone in your company who is specifically assigned to oversee debt recovery tasks. This will make the entire process more streamlined and efficient, allowing you to avoid mistakes that often stem from having multiple staff members contact one debtor.
If your business has multiple unpaid invoices from several bad debtors or if you don’t have enough resources to handle this process internally,it would be best to hire an external debt collection agency like Slater Byrne Recoveries.
2. Always improve and update your process
Aside from ensuring that your debt collection process is well-documented and systemised, you also have to make sure that it’s regularly updated. Learn from your mistakes and find ways to make your invoicing and debt recovery techniques more effective.
For instance, you may find that clients fail to pay on time because they are unable to access the payment option you offer. In this case, providing additional options such as online payment would easily solve the issue.
3. Keep your entire team informed
Remember that proper and constant communication is essential to efficient debt collection. Always keep a record of all contact made with your debtors. This includes both online, written, and phone communications. These records will be useful in case you need to initiate legal proceedings.
It’s also important to keep your staff updated about the status of your collection process. Inform them who the bad debtors are and which accounts have been suspended, if any. This way, your team can work more coherently and avoid miscommunications or costly mistakes.
4. Know when to stop
At some point during the debt recovery process, if your client is still ignoring you and refusing to pay, do not be afraid to pull the plug. Put a stop to their account and halt all transactions with them. This not only saves you from providing services or products that will end up unpaid, but also sends a strong message to other customers. It tells them that your business will not be taken advantage of.However, be sure to remain polite and professional when informing clients that their account has been suspended. Follow procedure and go through the proper channels. This means initiating legal proceedings with the help of an expert debt collection agency if the debt is significant. This is something that Slater Byrne Recoveries can certainly assist you with.We specialise in recovering debts that no one else can, and we have worked with many companies in various industries across Australia. So, whatever your debt collection needs are, we are here to help!Call us now at 1300 794 290 for a FREE consultation. You can also send us an email at firstname.lastname@example.org.
Liam White joined the Slater Byrne Recoveries team in early 2013. He has worked across the credit & dispute resolution industry for a number of years. He is currently working in a Marketing/Head of Sales capacity at Slater Byrne Recoveries.