Unpaid debt is a serious problem that negatively impacts cash flow and revenue. But what is even more frustrating is when your collection agency fails to get your customers to pay up.
Whilst there are various factors at play to ensure the effectiveness of debt collection, access to accurate information and documentation can help turn around even the most difficult collection files. Collection agencies who receive proper documentation regarding the debt, from their clients can greatly increase recovery rates.
When you hire a debt collection agency you expect to get results. Your correspondence with –with your accounts , will provide context to why the balance is outstanding and what negotiating tactic and leverage the collection agency can utilize in collecting the balance. Providing access to communications and other transaction related information can help an agency determine best strategy to collect on your delinquent balances.
Ask your agency to provide a checklist that can simplify the process of filing and submission of important documents. In the meanwhile, here’s a list of key documents/information to get you started.
Proper documentation helps collectors devise and execute more effective collection strategies. And in the event of disputes, this will assist in resolving it quickly whilst ensuring compliance. It allows the professional debt collector to approach debtors tactfully, manage negotiations based on facts, reduce the risk of non-compliance and maximize recoveries.
Collecting overdue accounts is a delicate business that is highly regulated by stringent consumer-focused laws. Whilst some cases need a more aggressive approach others may be victim of economic conditions that may have impacted debtor’s short-term ability to pay. That is why access to comprehensive information can help gain better clarity and understanding, duly substantiate claims and make smart decisions on how to collect on an overdue account.
To know more about how do we do it, talk to us today!