When you’re a business owner, making sure you receive payment for goods and services is at the heart of your overall financial health. If clients fail to pay invoices on time, debt collection may be necessary to receive the payment you’re owed. Unfortunately, simply asking for the amount due won’t always work in your favor. In some cases, the collection process could end up costing you a customer or placing you in a legal battle. If you want to avoid these pitfalls, here are a few tips that could help improve your collection processes.

5 Tips for Effective Debt Collection

1. Maintain a Positive Attitude

Debtors will typically act on the defensive when they are told they owe a certain amount, so it never helps to act aggressive or speak without empathy. Instead, adopt a human-to-human approach that is as light, personable, and positive as possible. This attitude will help your client understand that you’re simply trying to collect on debt—not make threats.  

2. Have Accurate Information

Before making debt collection calls, make sure all the information you have is up to date and accurate. Unified invoicing software can help simplify this process. If you call prematurely or present inaccurate details, you may not only lose faith in your client but also face resistance on any remaining payments that are due. In some cases, presenting false information could result in legal action from the debtor.

3. Document Thoroughly

During the call, make sure to take extensive notes on any information that the debtor provides, such as their reasons for nonpayment or disputes they have. This information will help ensure that all follow-up conversations are accurate.

4. Follow Up With Clear Agreements

If you negotiate with the debtor to receive future payments or levy additional fees, follow up with a written letter or email that outlines these new terms. This correspondence can be incredibly useful if you need to make additional debt collection attempts.

5. Hire a Debt Collection Agency

While it’s important to receive funds, trying to manage the debt collection process in-house can cost your company a great deal of time and money. Third-party collection agencies will work on your behalf to contact debtors, as well as negotiate and receive payments in the most efficient and compliant manner.

Possessing nearly two decades of experience in account management, Joseph, Mann and Creed is a leading debt collection resource for businesses. Embracing an assortment of effective and legally compliant strategies, this third party collection agency in Twinsburg, OH, will streamline the process to save you time and increase incoming payments—including those owed by international clients. As a commitment to their superior results, this service is paid on a contingency basis; you won’t ever have to pay them for support unless payments are received. Follow them on LinkedIn for up-to-date news and information. To learn more about their capabilities, visit this collection agency online or call (216) 831-5626.