Outstanding debt can be a major deal breaker, especially, if you are the owner of a business. No matter what your profession you are in, outstanding debt can wreck your accounts as quickly as they can set them right. For this very reason, it’s equally important to be able to recover outstanding debt quickly, in order to ensure payments remain current at all times.
Here are five debt collection tips to recover outstanding debt quickly.
1) Call weekly on pending accounts: Customer accounts beyond 30 days past due need to be called on every week. This way, when your debtors know they owe you money, it becomes easier to have them pay up. People who keep waiting for time to lapse might often end up waiting more than their due share of time.
2) Demand 100% payment clearance: When someone owes you money, you have to get right down to business. For this very reason, when you contact your debtors, you should ask them to clear all the pending dues. This way, you might be able to recover a part of the money in a stipulated time period. Every time you call them, make sure you ask them to clear 100% of their dues, to minimalize pending dues.
3) Offer payment plans: Many companies often go ahead and offer easy payment plans to customers. For example, you can break down the pending amount into 6 equal installments and charge an interest rate on the outstanding debt, in order to make it convenient for your debtors to pay up on a monthly basis. This way, even the debtors are happy, and you can rest assured you would also be able to recover a little more than just your outstanding money.
4) Employ debt collection agencies to do your bidding: If you have some stubborn debtors, then you can even employ debt collectors to do your bidding. This way, you can be sure of being able to recover 80-85% of your pending dues in the shortest period of time. Debt collection agencies have their own strategies to collect money from customers who are refusing to clear the pending dues.
5) Go legal on your debtors: When nothing seems to work, the court of law comes to your rescue. File a case against your debtors, in case you have tried and tested all possible avenues of collecting money on your accounts. However, keep this as an option of last resort, since you might have to end up paying more than what is owed to you, in the form of legal fee, lawyer fee etc. This is a decision which should be taken keeping in mind the pending amount, the people involved and the total cost of recovery.
These were some of the debt collection tips to recover outstanding debt quickly. They should be implemented in the order they appear, to ensure minimal over expenditure, when it comes to collecting money on your pending accounts.