Let’s talk about debt recovery. More importantly, let’s look past the things that everyone considers part of the debt recovery process and look at the things you probably haven’t considered…and why those things are important.
Debt Recovery Starts Before an Account Is Past Due
Your debt recovery process should start before an account is past due. Proactive measures put into place from day one of an account can minimize the chance that it will go past due. Make sure that clients understand when their payments are due. They should have the name and phone number of someone who can help them if they have questions or even a problem regarding their invoice. Additionally, following-up with clients after their appointment to ensure they’re happy with your service can go a long way.
Finally, begin calling accounts if they are even one day past due. This can help make sure that you get paid.
Treating Everyone with Respect – Even Owners of Past Due Accounts
How warm and fuzzy would you feel toward a business when you knew you were late and someone called yelling and screaming at you? Now, how would you feel if a mistake had been made that the company didn’t catch and they called and treated you in such a way? Debt recovery is far more effective if you treat everyone, even owners of past due accounts, with respect and kindness. Keep in mind that the power of the Internet gives debtors a little bit of power. All it takes is one or two negative reviews posted online to hurt your reputation. Treating everyone how you want to be treated will help protect your reputation and it will help you get paid.
Review the Payment Process
Just because a payment process makes sense to you doesn’t mean that it’s the best choice for your clients. Review the payment process for ease of use. Are there enough payment methods offered? Can people pay online? Can people call in to make a payment? And just how easy is it for people to get through the payment process? Don’t rely on your own opinion. Create an easy survey for your clients and ask them what they think about your payment process and how they would improve it.
Understand Debt Recovery Laws
Before you ever get started in the debt recovery process for your business, make sure that you understand both federal and state laws. For instance, according to the Fair Debt Collections Practices Act, there are certain hours during the day and night that you may call. You may not make threats. You may not call debtors at work if they tell you not to call them at work. Also, you must provide verification of the debt if that’s requested. If you violate the law, you could find yourself in the middle of a nasty lawsuit. Many states have their own laws related to collections. Even if it is your intention to hire a first or third party debt collection agency, you should understand the basics and you should always remember that the behavior of the collection agency will be associated with your business.
Work with a Professional
If you’re looking to improve your debt recovery efforts, you’ve come to the right place. Clients ARM has more than 30 years of experience in debt recovery, client care, and accounts receivable. We help companies just like yours get paid. Our rates are reasonable and we provide free consultations. Contact us today to learn how you can improve your debt recovery process with old fashioned customer service!