Even in the most popular business industries, at one time or another many people find themselves dealing with delinquent accounts and searching for successful debt collection strategies. Time is truly of the essence when it comes to dealing with these types of late accounts. Statistics show that the longer the amount of time that the account has been unresolved, the less likely you are to receive any payments. Using proper tactics can be crucial when it comes to collecting those unpaid debts.
Strategies That Work
Although there are many different ways to approach debt collection, not all strategies will be successful. In order to resolve the most delinquent accounts, it is advised that you take the following things into consideration when determining which tactics are best for your business.
1. Altering payment terms are a great way to convince debtors that you are willing to work with them. If the total balance due was $500.00 for example, five payments of $100.00 each may be much less daunting than paying the total amount in one payment. By accepting smaller payments, you are showing the debtor that you are considerate of their current financial situation and understand that they are concerned about making payments when possible.
2. Maintaining open lines of communication with the debtor can make a world of difference in the world of debt collection. Talking to a live person about past due balances can seem very overwhelming to some, whereas receiving a short and gentle reminder by SMS, email or automated voice message may give the debtor a gentle push in the right direction.
3. For clients who are difficult to contact or express their intentions to ignore the debt, it may become more cost-effective to simply hire a debt collection company to track down and obtain the monies