Learning a few of the keys to successful debt collection can have an enormous impact on your company’s ability to get paid on past due or unpaid accounts.
Keys to Successful Debt Collection: Timing
Timing is an important factor in debt collection, as once a debtor has allowed a bill to go unpaid, after 30, 60 and 90 days, the debtor becomes less likely to ever pay the debt, since they move on to other pursuits and any relationship you or your company may have had with the debtor when the product or service was provided has long since faded.
Swift action and consistent communication will show the debtor that they are not going to get away with not paying the money owed to you. The psychological effect on a debtor of inaction by the creditor can seriously damage your ability to recover payment and, over time, the chances dwindle even more. The key to successful debt collection, strike while the iron is hot and contact your debtor immediately upon non-payment.
If a debtor refuses to pay, makes excuses or ignores numerous requests for payment, you might consider turning over their account to an experienced debt collection company to send a powerful signal to the debtor that the payment they owe will be pursued vigorously.