© 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.