If you are like most business owners and most people in fact, you believe in the inherent goodness of others. You want to believe that when someone tells you they will pay you what they owe you that they will really do it. You may even extend a line of credit against your better judgment because you want to believe that they will pay you back.
Or at least that is the outlook you have for the first few years in your new business. Then you get burned by a few debtors and you realize that collecting debt is a necessary part of your job and very few people actually pay you on time. You see how important it is to instil foundational debt collection guidelines. Alternatively, you can hire a debt collection service with trusted and quality debt collection guidelines.
It can be difficult to know how to approach debtors who haven’t paid you back, but when you do have to confront a debtor about payment you also need a plan. Turning over someone to a debt collection service does not have to be your first option. So, here are some tips to develop your own debt collection guidelines.
When it comes to debt collection, make sure you keep an open mind and remain realistic. Before making initial contact, it’s good to conduct your own research. You could conduct credit search and make enquires into the financial stability of your debtor. When dealing with debt collection it’s best to formulate realistic expectations.
Make Initial Contact:
When payment is past due on an account, you should make initial contact with the debtor in a friendly way. Use a professional attitude, but approach the debtor as if you know that they simply forgot to pay their bill. You do not have to make excuses for them or even accept their excuses. After all, they do owe you money. But you can give them the benefit of the doubt until you have a reason not to. Sometimes debtors do forget to pay or they have a family emergency that takes precedence over paying your bill that month. In those cases, a formal letter or a bill with a letter should be more than enough to get the bill paid.
Layout Your Plan of Action:
If initial contact is unsuccessful or the debtor does not respond to your contact, it is time to take one step further. After repeated attempted to contact a debtor many businesses simply hand them over to a collection company. However, before you take that step, give it one last try to get payment. You can send the debtor a letter outlining your plan. Tell them that the next step is to turn them over to a collection service and then give them a deadline to pay the bill before that happens.
When following your debt collection guidelines it’s important to speak in specifics. After making contact and deciding on a plan of action, communicate that plan with your debtor and lay out the specifics, including dates for payment and the specific amounts. If your debtor starts spilling out blanket statements like “I’ll make a payment soon,” counter with a series of specific dates for payment instead.
Get it in writing:
After meetings and conversations with your debtor, make sure to confirm the details in writing. So, send follow up emails noting all the points made in the meeting or phone call. Also, it will be handy to have a written acknowledgement of the debt, in case you are required to take your debtor to court.
Always include payment details:
In all correspondence include your payments details to make it easier for your debtor to make a payment. Including your payment details also reaffirms a strong stance with your debtor.
Finally, make sure you follow through with what you say you’ll do. If you stipulate you’ll follow up on a specific date – do it. Make sure to follow up if a payment is declined or missed.
When to Hire a Debt Collection Service
Don’t be discouraged if your debt collection guidelines don’t foster any results. Debt collection solutions are ticky, and in most situations, it’s best to enlist the help of the big guns. You know it’s time to hire a debt collection service when you employ your debt collection solutions without any results. Debt collection agencies specialise in getting your money back in your business. Here at Profcoll, we can help you with all your debt collection needs.
What Profcoll can offer
When you need debt recovered, Profcoll is your go-to debt collector. We have over 20 years experience in debt collection, with expert account managers to handle your case every step of the way. Profcoll understands that every relationship with your customers is special, even if there’s some bad blood. That’s why we handle debt recovery like a professional. We employ an assertive approach, without aggression. We also apply modern methods and use of advanced technologies to help smooth out the debt collection solutions.
When you work with Profcoll, we get paid when you do. So, if we fail to recover your debt, then our services are free-of-charge. We also don’t believe in nasty joining fees. We’re dedicated to providing you with a happy satisfied experience, and most importantly, that deliver that cash back into your business.
Our approach to debt collection guidelines
Before choosing the right debt collection agency, it’s best to get acquainted with their debt collection guidelines, so take a look at how we would handle your debt collection:
- We do it the modern way, with a twist of traditional. At Profcoll, we offer an alternative to traditional debt collection practices. Since 1996, we’ve developed a modern approach, fueled by a desire to change traditional outlooks on debt collection. To aid in the quest to collect your debt, we employ the latest in expert technologies and vast databases to make it easier to track down valuable information.
- We get results, quickly. Our team of dedicated account managers work hard and fast to deliver quality results to our clients. Each client is assigned their own account manager to help deliver a fast and efficient outcome. With 23 years experience, you can trust our account managers to do the best for your business. Our innovative team is dedicated to delivering your money back into your pocket.
- Expert strategy for those hard-to-reach debtors. With the help of our team debt collectors and over 20 years experience, we have designed and perfected the process of tracking and collecting debt employing a variety of resources. Part of our debt collection solutions is an expert investigation strategy. Our team employ an efficient and delicate strategy to help track down hard-to-reach debtors and negotiate payments, serve writs, subpoenas and other necessary court documentation.
- We give all clients the personal treatment. With a dedicated team, we apply a unique strategy to every case. At Profcoll, we also offer a diverse selection of debt recovery services. We’ve built a network to service any and all your debt collection needs, from start to finish. As per our debt collection guidelines, the recovery services we offer include debt collection, legal action, in-house agents, investigations, mercantile enquiries and credit checks. Profcoll takes care of your bad debt from A to Z.
- Out of the box thinking for debt collection solutions. We know that each debt collection case is unique and may require a fresh outlook. In each individual case, we ask the right questions, like is the debt owed in assets, or are there complex contracts at play. We know when to ask the right questions, and how to get your tricky debt sorted.
In addition to debt recovery, we also offer insolvency and refinance advice and hardship services. When you work with Profcoll, we don’t get paid unless you do. So, if for some reason cannot collect your debt, you won’t need to pay.
If you’re ready to sort out bad debt, make a free, no-obligation enquiry with us today. We look forward to meeting you and telling you more about our debt collection guidelines!
Why Choose Profcoll?
Our approach to debt collection solutions, here are a few more reasons to choose Profcoll to help sort out your bad debt.
- Flexible service with no lock-in contracts: With 23 years of experience in the industry, we know debt collection cases are rarely black and white. When you work with Profcoll, don’t expect any lock-in contracts or annual fees, nor will you be paying for what you don’t need.
- Expert train with 20 years experience: A large, diverse team means expert knowledge in all areas of the debt collection solutions. Each team member brings a new perspective and a fresh outlook on debt collection solutions.
- Commitment to social responsibility: At Profcoll, we’re committed to running a green business and doing our part to have saved our beautiful planet. We apply green practices to office operations and all areas of our business.
Sorting out debt can be tricky, so you can start by generating your own debt collection guidelines, however, don’t be afraid to call in the big guns. If you have debt that just won’t go away, enquire today!