Maintaining a healthy cash flow is a key part of running a business, and being owed money can throw a spanner in the works. Unsuccessful debt recovery can be costly, but it also uses up valuable resources and time. Plus, if you go about debt collection in the wrong way, you could put your relationships with customers and clients in danger. This is why implementing effective debt recovery strategies is so important, and why it’s often best to hand things over to a team of professionals.
The Best Ways to Improve Business Debt Recovery Rates
- Clear Communication and Documentation – When it comes to business debt collection, communication and documentation is key. By using polite language when speaking to debtors, it’s a lot easier to keep the conversation respectful, professional, positive and moving forward. It also helps to avoid any confrontations or miscommunication. A lot of debt collection agencies, including Cobra Financial, focus on written communication. This is so we have proof of every correspondence we have had with a debtor, in case it’s needed again in the future.
- Follow Up with Debtors and Issue Reminders – A lot of businesses make one attempt at recovering a debt, and then move on. But, this is unlikely to result in a successful debt collection. It’s important to follow up with debtors quickly, especially if they have asked for more information or if they have a question. Not only does this convey professionalism, but it also keeps the debt collection process moving forward. Issuing reminders is also important, as it reminds a debtor that you’re not giving up, which increases the chances of them paying.
- One Size Doesn’t Fit All – No two debtors are alike, which is why it’s important to tailor debt collection efforts. As a debt collection agency, we analyse each debtor to better understand their finances, identifying if they are capable of paying. With this information, we determine the debt collection strategies that are likely to be the most effective. It’s also important to customise repayment plans, ensuring that the agreed plan is realistic and affordable for the debtor. If it’s not affordable, the debt is unlikely to be recovered.
- Choose the Right Debt Collection Agency – There are a handful of debt collection agencies out there, but choosing the right one can boost your debt recovery rates in a big way. It’s important to find a debt collection agency with experience in your specific industry, as detailed knowledge of the sector provides an insight into why a debtor owes money, and what’s going to convince them to pay.
At Cobra Financial, we have worked with a whole host of businesses over the years, going above and beyond to recover debts. There’s a lot that goes into recovering a debt from someone who’s unwilling to pay, and a lot of businesses simply don’t have the time, resources and knowledge needed to ensure a successful outcome. By handing everything over to us, you can relax, knowing that your debt recovery efforts are in expert hands. Get in touch to find out more.
