Running a business is a challenging task in itself. There are operations to overlook, overheads to manage, and revenue to collect. Regardless of how precise all your planning is on paper, there are bound to be a few unforeseen setbacks. One of these is the stack of unpaid invoices.
Collecting unpaid debts from customers is one hurdle; maintaining good customer relations while doing so is another. Rather than taking the time, resources, workforce, and money away from the business itself and focusing on recovering debts for which you might not be well trained and equipped, it is best to seek the services of a professional debt collection agency. These debt collection agencies are professional in their approach and strictly follow the legal procedures to help your debtors find the best solution to clear their unpaid debts.
However, a systematic internal process can significantly improve the chances of debt recovery in reduced time and cost. Here are some essential methods that help your business prepare for the possibility of unpaid debts.
Maintain A Good Paper Trail
Business transactions should always follow a systematic procedure with a legal agreement in place. The terms and conditions between the two parties should clearly state their respective obligations and payment terms. Having a clause addressing the possibility of delayed payments and possible solutions that both parties agree upon will significantly support your efforts to recover debts. Including the additional recovery fees in the case, late payment or debt recovery does occur.
Detailed Information Of Client/Debtors
Knowing who your business is dealing with seems like a no-brainer, but sometimes underestimating these details can prove to be costly. Collecting essential information on your clients and customers greatly aids the effort of recovering debts and could even help avoid unpaid invoices in the first place.
These details include your customer’s name, address, email, company name, ABN, contact name and information, etc. Knowing who they are and where to find them when needed saves a lot of time and cost during recovery. Both for your business and your client/debtor.
Debt Recovery As Part Of The Internal Process
For any business, the possibility of unpaid invoices is not that farfetched. Markets are subject to volatility and fluctuations, giving way to multiple circumstances to cause a delay in payment. Establishing an internal process for debt recovery as a natural progression of account receivables allows the recovery efforts to commence on time. The later the recovering process begins, the costlier it gets while also slimming the chances of recovery.
Having an internal systematic process during transactions from the get-go greatly supports the debt collection efforts. Partnering with a debt recovery agency helps your business operations by taking the load off you and avoiding the recovery process’s hassle and stress. Apart from the legal documentations, the recovery process heavily relies on the communication approach with the debtors. Most of the time, they are often embarrassed themselves for meeting their payment deadlines. Debt recovery professionals follow an empathetic approach to explain the range of possible solutions and help the debtors meet their due payments. Jumping directly to legal actions can be costly for everyone involved and damage the relationship between the company and customer, further harming everyone’s reputation. Among the most successful and proficient debt collection agencies in Australia and New Zealand is eCollect. Whether the debt is big or small, personal or commercial – eCollect can help recover them with their experienced team of professionals. Get in touch now to get started.