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How to Take Control of Your Debt Collection

Collecting outstanding debts is, unfortunately, an unpleasant reality in the business world. You have put your valuable time and resources into providing services to a customer, and you deserve payment on time and in full. However, that’s not always the case, and when invoices are outstanding you need to collect on these.

Debt collection discussions can quickly become uncomfortable, messy and unprofessional if not done in the right way.  If conversations with a debtor are not handled firmly but also sensitively, the situation can soon descend into an outright confrontation.

Here are some constructive pointers on how to keep a debt collection conversation productive and on track. Remember, the ultimate aim is to receive payment in full on the debt and, if possible, maintain a civil and professional relationship with the customer involved.

Open the Conversation Courteously

When opening the conversation with the customer, be forthright, clear and transparent. You will need to explain why you are having this conversation and give them the details of the outstanding debt.

Once they understand what you are seeking to achieve, it’s time to listen empathetically to their reasons for not having paid the debt. Be careful of making quick assumptions because in some instances, there could have been a mistake or the amount owed may have been paid already but not recorded.

Understand the Customer’s Situation

You need to get a full understanding of the customer’s situation so that you can begin negotiating a solution. A confrontational attitude will either raise the customer’s hackles or put them on the defensive – both of which are emotional states that are not conducive to solving the problem.

When you know why the customer has not paid the debt, you can begin to discuss a possible way forward concerning repaying the debt. Make it clear that you are amenable to presenting various options. Discuss the different possibilities in detail until you find a solution that is workable for both parties. The possibilities for repayment could range from paying an agreed regular installment if the customer cannot afford to make full payment immediately, through to the ideal solution, payment in full.

Clarify the Terms of the Repayment Plan

When you have both reached a solution, reiterate the detail the terms of the debt repayment plan. Ask them to acknowledge they understand what they have agreed to and remind them of the consequences of not following through on the agreement. Failure to comply could involve legal action or turning over the debt to a professional debt collection agency, like Boston Commercial Services.

After concluding the conversation, draft the physical debtor’s agreement as soon as possible. Please send a copy via email, post or fax and ask them to confirm receipt of it.

When the time comes for the agreed-upon payment, remind the customer via email and, if necessary, in a phone call, of the amount, the date and the payment details they need to fulfill their side of the agreement.

In all conversations, it is most important to remain in control and adopt an attitude that is positive, understanding and patient with the debtor if you hope to reach a win-win outcome for both parties by the end of the debt collection process.

Boston Commercial Services has experienced and professional debt collectors Sydney whose speciality it is to recover your debts quickly without putting your client relationships at risk.

 

Read Also:
How can A Debt Collection Agency Assist You to Recover Debt?
Tips For Dealing with Clients Who Won’t Pay

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  • I have worked closely with Boston Commercial Services for over twenty years across four different companies and would not work with anyone else in regards to helping me with my outstanding accounts. Whenever I have started a new role, the first thing I am asked is, “How would you go about cleaning up our accounts receivable ledger?” My answer is always the same – “The first thing we need to do is call Boston Commercial Services”.

    Voytek Bradford

    Freedom Foods Group Limited (National Credit Manager)

  • I have known the principal of the BOSTON Group (Derryn HARRISON) as well as key staff members (including Ben GOWER) for well over 2 decades and have been using their professional services for myself as well as for Powerhouse Logistics Pty. Ltd. on a regular basis, not only in Sydney but on a national basis.

    At all times BOSTON have been extremely pro-active, attentive, courteous and professional with all matters we threw at them. Their advice has always been extremely sound and commercial and I find them to be a "breath of fresh air" within the legal fraternity and have no hesitation whatsoever to highly recommend them.

    Peter Brueckner

    Powerhouse Logistics Pty Ltd (CEO)

  • Expect A Star has worked with The Boston Group for 10 years. In this time we have appreciated the ongoing support of Boston for all of our collection and legal requirements. Like most businesses cashflow is critical to ongoing success and growth, with Boston we have found a partner who are an extension of our business and play a key part in our cashflow management. The Boston Group bring a level of expertise to our business which is valuable and coupled with their excellent customer service we look forward to continuing to work with them for many years to come.

    Ryan Meldrum

    Former CEO

  • I have been using the services of The Boston Group and their legal entity for over 11 years. During this time I have found their service to be impeccable, delivered with the utmost professionalism and integrity. The vast majority of cases that I have placed with Boston were far from straightforward, requiring legal acumen and delicate handling. Having used all methods available without success to procure payment, I confidently placed these matters into their safe hands. In all instances a successful outcome was achieved.

    Mark Parish

    Credit Manager

  • SNP Security has had the pleasure of working with Boston Commercial Services for the past 11 years. Boston has played an integral part in the continuing success of SNP Security’s low DSO’s, 90 Day % Debt & of course Bad Debts Written Off.

    Amanda Griffiths

    National Administration Manager

Boston Commercial Services prides itself in offering specialised, professional services, through a highly experienced team of debt collector, with personalised client attention.