One survey revealed that almost 87% of accounts are current. On the other hand, only 0.4% goes over 90 days past the due date. Of course, current accounts aren’t much of an issue. It’s also advisable to rely on the providers of Corporate Debt Collection Services when an invoice crosses the 91st day. However, you can do a few things to keep delinquent debt collection in-house.
Credit policy development
Collection processes begin with credit policies. When an account becomes delinquent, you should clearly define the requirements of credit extensions, terms, and conditions, as well as actions that you need to take. Everyone should be perfectly aware of your sales policies, including your sales and service people and the ones who manage credit and collections. They should also receive training so that they can explain policies to new clients.
Follow-ups
You must follow up with invoices before they become due. While it won’t help you avoid delinquencies, it will surely improve your rapport with your clients. You should connect with your clients just before the products that they ordered appear before their doorstep. This approach acts as a customer service contact and a reminder of payment at the same time. You should ask if everything arrived on time or if the client has any questions. At this moment, you should take the opportunity to remind the customer about the terms of the due date.
Develop collection plans
With an appropriate in-house debt collection plan in place, you will be able to maintain consistency, omit guesswork, and even avoid the services of the New York Debt Collection Agency. You have to set up various treatment plans for different levels of risks involved. You should also provide standardized templates for written communication and scripts or discussion points for one-on-one contact.
Avoid extending credit
One last thing to do would be to avoid extending credit to delinquent clients. If you want to retain the customer, then you need to negotiate a win-win situation. For example, you can ask for money upfront until the client clears delinquencies.
