Post on 01-Jun-2015
© 2011 Apptivo Inc. All rights reserved.
Five Tips for Successful Debt Collection
Posted on December 22, 2011 by Ashley Smith
There are few things as frustrating in the world of business as a customer who won’t pay. You
delivered the product or service as promised, but the customer hasn’t lived up to their end of the
bargain.
If you’re striking out time and time again, it might be time to change the game plan. Below are a
few strategies you can employ to increase your chances of collecting what’s owed. The rewards
usually outweigh the cost of hiring a debt collection agency by far.
1. Stop Doing Business with Them
It sounds like a no-brainer, but there are plenty of companies that continue to do business with
customers or clients that aren’t paying up. Don’t enable your customers to keep putting off
payments by continuing to provide them with products, services or supplies. Simply cut them
off. If they need your products badly enough they will find a way to pay.
© 2011 Apptivo Inc. All rights reserved.
2. Keep Your Cool
It’s easy to feel angry when a customer won’t pay. But leave your emotions out of the debt
collection process. You won’t get results by making threats or yelling at your customers. Being
kind, yet firm, goes a long way.
3. Review Your Own Policies and Procedures
It’s a hard pill to swallow, but some of your company’s policies and procedures could be
hindering the debt collection process. In any case, it never hurts to take a hard look at them. Are
you being clear about payment due dates? Are you sending complete, professional-looking
invoices? Are you sending payment reminders on a regular basis? If not, customers might not
take your debt collection efforts seriously.
4. Work out a Payment Plan
Some 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 payment
plan. Ask the customer what they can afford to pay each month and bill just that amount. Most
customers will be grateful for the flexibility.
5. Hire a Debt Collection Agency
If all else fails, it might be time to call in the professionals. Many customers take debt collection
calls from an agency more seriously than debt collection calls from your accounts receivable
department. Even customers who have refused to pay for months might decide it’s finally time to
take care of the debt when a collection agency starts calling.
Author: Ashley Smith is a writer at CostOwl.com
We welcome your feedback and comments. Mention them in the comment below. Ex: @Mary has
tips on successful debt collection.