How to do a difficult collection and reduce losses

The increase in non-payment can hinder the growth of companies. The problem is worse because in many cases the company faces a difficult collection, which carries risks for the relationship with customers or suppliers. Knowing how to deal with this situation is essential to reduce losses with the delay of the payments.

difficult collection

Trying to conciliate can be a good way to solve difficult collection of debts. To do this, you must be flexible, and try to find a solution that is attractive for the indebted and you.

Seeks to establish deadlines, offers discounts for paying and try to negotiate how the customer can pay the difficult collection within a period that does not compromise the financial health of your company.

How to tackle the debtor?
The strategies include from hiring a firm of collections to send SMS messages to the client.

An SMS system, for example, offers solutions that replace phone calls, avoiding extra costs with any difficult collection.

The contact by SMS ensures a return of between 20 and 30% greater in debt renegotiations in comparison with other channels such as e-mail, letter, and phone. Its cost, moreover, is 95% lower.

With a system of sending by SMS the company sends a statement about the debt. The customer can respond according to your interest and to receive the barcode to pay the debt. The advantage is that it establishes a direct contact and the customer feels less intimidated than through the telephone.

Step by step for difficult collection

Do not let that debt spread
Stay always attentive to the period of time for payment of the debt. The more time passes the expiration date, the more difficult it is going to be charge it.

Send a debt reminder
Before doing a difficult collection, send a reminder to the debtor. It can be an e-mail, SMS or letter. If it is impersonal, immediately after the expiration will prevent you feel intimidated: the client could simply have been forgotten.

Create a personal contact
If the reminder fails, try to approach a more direct and personal. A cordial and sympathetic call, with payment options and negotiation alternatives can cause the client to settle the debt quickly.

Set the collection team to work
If none of the above results, consider putting into action a specialized team in collections. If your company does not have one, you can hire a specialized company. Remember, the cost may be high.