Strategies for collecting debt come in many shapes and sizes, depending on the situation. No one customer is the same as another — although some techniques are time-honored and effective.
One of those is collecting on early-stage delinquency. At DCA, we try and use techniques that bring closure to the debt as quickly as we possibly can.
Catching this early can not only collect your money faster, but it can also possibly save a great customer relationship.
Why prioritize early recovery?
It used to be that most debt recovery was focused on longer-term debt that was overdue, more like 30 days or 60 days instead of one day to a week past due. It’s clear, though, that focusing on early intervention is more effective in the long run.
You’ll not only recover more of the money that is owed to you, but it will also happen with more efficiency if it takes place within a week of being past due. It’s also a way to stem the tide of bad debt that you may have to deal with at some point.
While you may need to consider and develop an early collection plan, it’s also important to start at the very beginning. By looking at the credit history of customers and using strong evaluation techniques before making a sale, you can identify a more high-risk customer and decide if that person is right for the practices of your own business.
And we can’t stress this enough: communication early on with customers in debt is actually a plus for them. It’s not unreasonable to say that customers in general appreciate it when a business contacts them first to give reminders or to try to offer solutions to debt recovery.
You also need to extend this communication to after the debt is settled, just to ensure that you understand their situation and were able to remedy things in favor of everyone involved.
Your partner for debt collection
At the Debt Control Agency, we not only can work with you on whatever receivable management program you need. We also can customize the solution for you, making sure that effective debt collection fits exactly where you are in your own business strategy and planning.
Besides early-stage delinquency, we also have other options that may be a better fit depending on the customer. They include first-party recovery, aged debt and third-party collection.
Depending on the need, we can take care of the details while always protecting your customers’ data with the best cybersecurity available. To find out more about what we can offer you, go to our website.