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Strategies for collecting debt come in many shapes and sizes, depending on the situation. No one customer is the same as another \u2014 although some techniques are time-honored and effective.<\/p>\nStrategies for collecting debt come in many shapes and sizes, depending on the situation. No one customer is the same as another \u2014 although some techniques are time-honored and effective.<\/p>\n
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.<\/p>\n
Catching this early can not only collect your money faster, but it can also possibly save a great customer relationship.<\/p>\n
\u2028\u2028Why prioritize early recovery?<\/strong><\/p>\n 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\u2019s clear, though, that focusing on early intervention is more effective in the long run.<\/p>\n You\u2019ll 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\u2019s also a way to stem the tide of bad debt that you may have to deal with at some point.<\/p>\n While you may need to consider and develop an early collection plan, it\u2019s 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.<\/p>\n And we can\u2019t stress this enough: communication early on with customers in debt is actually a plus for them. It\u2019s 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.<\/p>\n 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.<\/p>\n