If you sell products or services, and your clients have the option to delay with the payment, then you know that there is a great risk they not to make the payment at all. And as an account ages there are small chances you to collect it. In this situation, you do not know what methods you should use to convince your clients pay you for something they use. In the majority of cases, it is advisable to hire a company specialised in debt collecting. This will be a profitable movement for you, and it will help your company grow, because you will have access to resources.
Signs you need to hire debt collectors
If you do not know if this is the best thing you can do, here are some signs you should not ignore.
- A new customer does not respond to your informative letters. There are multiple reasons clients are not able to pay, but the effectiveness of your business is influenced by the profit you get, so you do not have to think at the reasons why people are not able to pay.
- The terms of the payment are not respected. The majority of clients consider that they can pay for your products when they consider doing it, and not before the deadline. This type of clients cause companies from 30 to 50% financial loss.
- The clients make unfounded complaints and refuse to pay because they consider that the products or services you offer are not as qualitative as they expected. This type of clients are very difficult persons to work with, and the best way to recover your finances is to hire debt collectors.
- The buyer does not consider themselves responsible for paying for the products they received.
- In case a married couple purchased a product or service and they divorced before paying for it, they both will refuse to pay, and only professional debt collectors can solve this situation.
Tips on how to collaborate with debt collectors
When you decide to hire debt collectors, you have to make sure that you offer them all the information they need to recover your money. Also you should check if the information you offer them is accurate, because according to it they will make a plan. When you ask them to help you with a client, you should offer them the following details:
- The correct and complete name of the clients
- The address
- The phone number
- The name of the debtor’s partner in case they are considered responsible for paying the debt
- The email address
- The letters that were returned by the debtor
- The occupation of the debtor
- The names of the family members, neighbours or other references
- The summary of the actions you have taken to try to recover the debt
- The date of the last payment, in case they paid before
- The nickname or maiden name
You should fully cooperate with the debt collectors, and offer them the information they need, because their experience and knowledge will help you recover your financial resources.