Tips for Successful Debt Collections

Re: Tips for Successful Debt Collections

This is very interesting and helpful to know. I plan on settling an outstanding medical debt. Hopefully the payoff will be in the 60%-80% range. Maybe even lower! Thanks for sharing Ted!

Re: Tips for Successful Debt Collections

Hello everyone,

Here are few more tips on how to collect debt.

# Review the paperwork on the debtor before making the call.
# Adopt a straight, professional business-like attitude.
# Make sure you’re talking to the right person.
# Control the conversation. Keep it focused on the debt and on the repayment schedule.
# Be ready to adjust to the situation. Think about the kind of customer you’re dealing with and adapt to meet the circumstances.
# Keep detailed, accurate notes of every contact with the customer.
# Be Precise. Never leave a contact open ended, such as "We’ll talk next week," or "I’ll send what I can."

Hope you'll like it..!!

Re: Tips for Successful Debt Collections

Nice Information .But debt collection can be one of the mainly harrowing experiences for anyone to undergo first hand. However, just because some debt collection agencies have used harassment and intimidation in order to extract money from defaulting clients, there are strict debt collection laws that must be adhered to by every collection agency in business. In fact, if a collection agency steps out of line, there are avenues of recourse that a business or individual can access for help or protection

Re: Tips for Successful Debt Collections

The lifeblood of almost any company is the relationship they have between themselves and their clients, and in these ever more trying times as lots of businesses are finding it difficult to keep afloat, it is important that you utilize debt collection procedures which, if at all possible, don't damage your previous relationship with your clients. It is possible to spend several years building up a great working relationship with your customers, only to have it vanish because of poor debt collection techniques if the going gets a little rough.

One thing you need to bear in mind is there are several reasons for not paying bad debts, and, especially if your client has formerly continually settled on time, this is most likely a small part of the overall issue for making ends meet. Though it is important not to appear as a 'soft touch' and finding yourself at the bottom of the pile with regards to making repayments, it is also vitally important to treat your client with respect at all times, they are probably going through a very hard time, just as your company may be also feeling the pinch. It is crucial you have straightforward debt collection procedures in position, from the very beginning.

Do not allow too much time to elapse before reminding your client about delinquent charges. This could be by means of a very considerate reminder notice, mailed when the unpaid invoice is about 1 month past due. A very courteous and basic reminder is often all that is necessary, welcoming them to make contact with your business with any questions or problems concerning the unpaid amount, as appropriate.

A few days after the reminder letter is sent, the next measure in your debt collection process should be to follow up with a telephone call. If the person you need to speak to is unavailable, leave a message along with your contact details and your name, never speak to anybody else about the topic of the telephone call, it is important to keep it between you and your direct contact at this time.

If you are able to talk to the right individual, keep your dialogue considerate and casual. Use this dialogue as a way to discover whether there are any issues with the goods or services your company furnished, and if there are no complications in that area ask when the past due bill can be settled. Explain to your client that you'll make a notice of the payment date, thank them for their time and leave it at that for the moment.

If, after this phone call, the repayment is still not made, then the next thing in your debt collection procedure should be to telephone again, a short time following the past payment date which was originally promised. You'll still need to be warm and friendly and simply say the payment has not yet been received, was it sent? It might be beneficial at this time to mention that your business (if they do!) can take payment by credit card over the phone, and often this can be sufficient to stimulate a repayment or at best part payment of the unpaid amount there and then.

Unfortunately, should the debt continues to remain delinquent, it might be necessary to withhold any future business dealing with the customer till it has been satisfied. It might be economically feasible to use the services of a debt collection agency to continue with your debt collection procedures. A professional agency has lots of knowledge and experience in these kinds of matters, and can be very inexpensive if your original strategies haven't been successful.

Re: Tips for Successful Debt Collections

If you are not willing to give you precise information, can ask them. If you talk to a real person, and tell you that they do not know when they can pay, suspend credit and supplies to collect the account.

Re: Tips for Successful Debt Collections

I think it is important to keep emotions out of the debt collection process. Also, sometimes you may need to negotiate and cut a portion of your losses.

Re: Tips for Successful Debt Collections

Hello friends...

Very nice Tips for Successful Debt Collections. But my opinion is Account receivables (AR) and collections are a part of business that no one really enjoys. I like this tips so friend i shared to my facebook friends...Keep Submitting more..

Thanks for...

Re: Tips for Successful Debt Collections

its so nice to visit here a nice thread. Am so impressed with your such a good hard work, its definitely a good and diferent idea for others, you guys are doing good work good luck, keep it up..:)

Re: Tips for Successful Debt Collections

Everyone has talked about only the business expansion , none has said about the debt collection , thanks for shedding some light on this topic.

Re: Tips for Successful Debt Collections

Being wise in lending money can be the good way for this business.
Refer a borrower to a peer to peer lending network.
Put it in writing.
Communicate with the borrower.
Be flexible and get creative!
Be upfront and transparent.
Don’t be a pushover.

Re: Tips for Successful Debt Collections

Debt settlement companies are playing a crucial role in solving the dispute between the customers and the loan providers. Using the affordable loan repayment plan is good way to get rid of the debts.

Re: Tips for Successful Debt Collections

Hiring a debt collection agency is one of the best choice. The customers will take it seriously when an agency starts calling them.