While attracting customers, creating a good business model, and recruiting top-tier talent are all important parts of running a successful business, collecting the money you’re owed is just as important for your bottom line. The right approach can streamline your process and ensure more of your accounts receivable are paid, while the wrong debt collection tactics can damage your reputation and even cause trouble with the federal government. Here are some helpful do’s and don’ts to follow for collecting on delinquent accounts.

Do:

Be proactive.

Some of your clients may have simply forgotten to pay an open invoice and will promptly send a payment with an apology, but simply waiting for the money you’re owed is rarely an effective approach. Be proactive when collecting the debt by using multiple communication channels, including phone calls, email, and postal mail to reach debtors.

Use a third-party provider.

Specialized debt collection professionals have the resources, expertise, and tools to increase your odds of payment. Their agents will also have the training to avoid the kind of actions that can tarnish your company’s reputation.

Don’t:

Collect debts without knowing the law.

The Fair Debt Collection Practices Act and laws in most states strictly limit what companies may say or do while trying to collect on a debt. Even mistaken violations of these rules can open you up to consumer complaints, fines, and extensive legal trouble, so make sure you understand your rights and those of your debtors.

Engage in threats or harassment.

Unfortunately, many creditors feel they have to resort to telling debtors that they’ll be arrested if they don’t pay or calling nonpaying clients several times a day. Not only will these actions damage the public standing of your brand, but they might also result in legal action by state and federal watchdogs.

As a global leader in accounts receivable management and debt collection, Joseph, Mann & Creed in Twinsburg, OH, is a partner you can trust. With nearly 20 years of experience and a worldwide reputation for friendly service and reliable results, you can rely on their highly trained staff who specialize in problem-solving, mediation, and resolving your customers’ unpaid debts. Visit their website for more information on their focused debt collection services, call (216) 831-5626 to discuss your accounts with an agent, or learn more about these widely respected experts on LinkedIn.