Just about all companies have a Credit Control Department. Even the majority 1-Man firms have a policy and system of some sort. The trouble for many companies happens when the debtor just doesn’t pay. The Accounts Team send out statements and reminders, until, at a certain point they send out a final demand, before finally passing the responsibility for the debt over to a specialist debt recovery firm.

At this point the business relationship with the customer is well and truly broken beyond repair, and you, the Creditor have lost control of how the debt will be recovered.

A much better way to solve this problem is to use a little psychology. If the debtor is made to believe that he’s being closely monitored and to some degree pursued by a persistent process that unmistakably persuades him that once he’s crossed a certain line, unavoidable additional costs will be imposed, he’s much more likely to start to play ball. In particular when it’s further made clear to him that the more he procrastinates, the more the extra costs will be.

To use this approach efficientlt, you need a Debt Collection Process which seamlessly follows on from your usual existing Credit Control process. A single Debt Collection Letter is not the solution. In order to get paid without going to court, your Debt Collection Process needs to consist of a series of Debt Collection Letters, each one raising the consequences, and warning of real financial penalties for none payment. These penalties are then seen to be automatically applied by subsequent letters in the process, until the debt is paid.

In well over 85% of cases, implementing a proper integrated Debt Collection Process into your communications with slow and bad payers will eradicate the problem of very slow and none-payers.

In the minority of cases where you may have to take your case before the county court, using a Debt Collection Process will ensure that you have all the necessary documentation in good order, and you’ll be able to put an irrefutable case before the court. Additionally, you’ll have a completely clear and accurate picture of the extra charges you’ll be able to claim for your administration and late-payment interest.

The really good thing about integrating such a process into your procedures, is that its seamless character & progressive build up of real financial penalties makes sure that you always become “the supplier who must be paid” regardless of how tight finances become.

Using a Seamless Debt Collection Process, you educate your customers into always paying you on time. You may even find that they go on to implement the same system as you. Then you know you’ll have a good secure customer for years to come.

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