5 Ways to Make the Best of Debt Recovery
The idea of debt recovery can place dread into the hearts of business owners and delinquent payors in every state in the nation. Is there something else that can be felt about debt recovery besides a negative emotion? Actually, yes. Here are ___ ways to make the best of debt recovery.
Time to Reassess Your AR
If you notice that your need for debt recovery increases or even decreases by a noticeable amount, you should use that as a sign to reassess your AR policies and procedures. If your debt recovery needs increase, you need to take stock of your clients, your credit methods, and your AR procedures. This includes also taking a look at your billing. Are your bills going out at the same time each month? Do your clients know when to expect your invoices? It’s important that your invoices are timely and predictable. They should also be easy to understand. If you need help assessing your AR procedures, let us know. We provide a free AR process review.
Practice Your Negotiation Skills
If you’ve ever received a call on a past due debt, then you understand how people feel. It’s not a good feeling. When you need to recover a past due amount, use it as an opportunity to negotiate. Call and talk to your client. Find out what’s going on and what they can afford to do. If they can afford to settle with you, give them a reasonable settlement amount.
Strengthen Your Client Relationships
Yes, that’s right. You can use debt recovery to solidify your client relationships. Although you’re calling to collect on a past due account, you should use that call to your benefit. In the last tip, we told you to find out what’s going on with your client. Touching base with your client and being genuinely concerned for them can help keep your clients loyal to you. You can help them find solutions for what’s going on.
Educate Yourself on Debt Recovery
This is particularly important when you first realize that you need to recover past due accounts. Take debt recovery as an opportunity to educate yourself on the best practices on debt collection and the associated laws. You can, of course, do your own research and learn about the Fair Debt Collection Practices Act. You could also partner with a debt recovery expert to learn more.
Debt Recovery as a Means of Assessing How You Use Your Time
When you’re in business, time is money. If you begin to notice that your recovery efforts are taking up more and more of your time, then you’re probably worrying about how you’ll continue to grow your profit while you’re dealing with this AR matter. Consider whether taking this time away from doing business is worth it for you. You can save both time and money if you outsource your debt recovery.
Clients A.R.M. is a debt recovery expert specializing in both first and third party solutions for service based businesses of all sizes. If you have questions about debt recovery or if you need help with your collections, contact us. We’d love to help you!