Debt Collection Tips
Author: Kevin Michael
Debt collection tips from an experienced debt collection agency can help guide your business to successful debt recovery. The following article contains a few useful tips to improve your company’s debt collection and recovery efforts.
Debt Collection Tips – Supporting Documentation
To begin with, your debt must be verifiable to be collectible. Iron-clad supporting documentation to prove the legitimacy of the debt is paramount. Collecting debt can be much more difficult if there is any question as to the legitimacy of the debt owed. To ensure your debt will be collectible, should the need arise, be sure that any amounts owed are sufficiently supported by complete and thorough documentation along with signatures and dates, as well as clear acknowledgment of the amounts owed and the date the total amount is due. A gentlemen’s agreement and handshake simply does not suffice in today’s business world. Signing thorough documentation mentally prepares the debtor so they are fully, as well as, subconsciously, aware of the commitment they are making to pay your company the agreed upon amount by the agreed upon date.
Debt Collection Tips – Don’t Delay
Debt collection efforts can be greatly diminished if too much time passes before initiating debt collection activity. Statistics have shown that the older the debt becomes the harder it is to get a debtor to pay the money they owe you. Any delay in contacting and engaging your debtor can send the message to the debtor that they can get away with not paying what they committed to pay you. Once the debtor has developed the sense that they do not have to pay, debt collection becomes much less effective. Always be sure to initiate contact as soon as possible to send the message to the debtor that you are aware of the delinquency and intend to pursue the debt until it is paid in full.
Debt Collection Tips – Be Consistent
Be consistent in your debt collection efforts to show your debtor that you have no plan to forget or forgive the amount they owe you. It is essential that you devote ample time and resources to ensure successful debt recovery.
Debt Collection Resources:
About the Author
Business Development Consultant with over 15 years of experience assisting companies in a variety of sectors, including venture capital/investment firms, call centers, real estate, auto, apparel, durable medical supplies, industrial recycling, industrial fabrication, land development, credit management and commercial collections agencies. Areas of expertise include internet marketing, corporate strategic planning, business writing, risk assessment, sales, call center management, credit/collections and international business strategy.