The Secret To Collecting Debts

by Tristan Andrews - Date: 2006-12-03 - Word Count: 397 Share This!

There comes a time in the life of every successful business when it happens. A customer doesn't pay their debt. Try as you might, the customer fails to respond and the invoices go unpaid. But fear not, there are steps you can take to increase your prospects of collecting a debt from a customer. Here are a few pointers that could make the collection process smoother and more successful:

1) Make your claims official by putting them in writing

Customers tend to respond to written requests better then phone calls. It is easier for them to avoid calls than letters. Etters are stated in a clear a concise way and are to the point. A phone call with a disgruntled and ashamed client may not be so clear and concise.

2) Be precise about your expectations

Telling a client you want to be paid is like telling a fish he needs water. Be clear. Set dates for repayment and ask your client to adhere to the payment schedule. Negotiate from this concrete schedule if need be.

3) Remember the Golden Rule

Be polite and courteous. You are more likely to achieve your goals with a customer whom you haven't insulted or belittled. We all like to be treated fairly and will usually respond. Be warned that there are laws that prohibit you form threatening or harassing a client.

4) Work together with the debtor rather than against him

There is no doubt that the debt is as unpleasant to your client as it is to you. Be cooperative and establish a relationship with your client. Work together with the client to establish the best way for him to make repayment. This will increase your chances of getting your money.

5) Pick your battles

Is collection of this debt worth the time, money and energy you are putting into it? Sometimes the time and money it takes to collect a debt could be better put into marketing, development of policies, or other activities to develop your business. Calculate what it will cost to recoup the debt and then make an informed decision on what to do next.

6) Hire a professional

Collection agencies exist for a reason. They can save you time, money and the unpleasantness of doing the collection yourself. Why waste your time when you can let a professional do the work for you? Their tried and tested techniques will net you the results you are looking for.

Related Tags: collection agency, collection agencies, debt collection

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