Regardless of the nature and size of the business, outstanding debts are of much concern because there are chances of debtors gone missing and debts remaining unpaid which can affect businesses negatively.
Regardless of the nature and size of the business, outstanding debts are of much concern because there are chances of debtors gone missing and debts remaining unpaid which can affect businesses negatively. To ensure continued business growth and success, it is important for business owners and managers to accept the reality of customer debts and arrange for debt collection. The trend of outstanding debts persists for both commercial debts and consumers debts, although the reasons might be different. The problem is much more for consumer debts because of the high chances that debtors may vanish in thin air, and the creditor simply loses all contact.
As debt collection is an important business activity, the Australian Competition and Consumer Commission (ACCC) has promulgated guidelines for taking certain actions to initiate and promptly complete the debt collection process.
Friendly payment reminder
Sending a courtesy reminder to customers when payment is overdue by contacting them over phone, email, or traditional mail is the first step in debt collection. From forgetting the due date for payment to sending payment to the wrong payment channel or bank, there might be many reasons for not making payment. Your reminder may just alert your customer about the missed date. Providing the bank details and contact information along with the reminder increases the chances of payment.
Overdue payment reminder
Despite the first reminder if the debt still remains unpaid and there is some doubt about the debt repayment responsibilities of the customer as evident from the customer missing the extended payment dates and not communicating with the creditor, then it is time to repeat the reminder in the same way as done earlier. This time the reminder over the phone or email should include the details of the outstanding amount highlighting the past due datesand the money they owe. At the same time, there must be a request for making the payment at the soonest.
If the second attempt to recover debts does not yield any result, then it is time to take the last step in the series of sending reminders. On noticing that the debtor has failed to make payment in accordance to the agreed payment terms and despite extending the time has shown no interest to utilize the opportunity, as usual, your email or phone communication should include the details of the outstanding amount coupled with the request for making payment.
When all attempts to awaken debtors from their slumber fail, it becomes clear that mere communication will not help and there is the need to establish direct contact with them. In case you have not called them earlier but communicated through email and letters, you can now speak to them over the phone. You can request them to make payments.
Since the process entails contacting the debtor repeatedly, which is a time-consuming process and might even involve some negotiations for settlement, engaging a company for
can make the task easy. The debt collection company knows the right techniques of eliciting a positive response from debtors so that the debts are cleared on priority.
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