If you want to reduce costs, you need to develop a good debt recovery strategy which will save you money and time. Especially when your accounting department is having a reduction in their budget you need to improve your debt recovery strategies to maximise your resources. The following are some of the ways how you can strengthen your debt recovery strategies:
Locating the debtors who are hard to find:
One of the first things you need to do is locate all your debtors who are hard to find. You need to find all the contact information of the debtors, and you will be able to approach them easily. If you happen to have an extensive database of all your consumers, you will be able to get the contact information of all your debtors easily.
You need to identify an account which has some of the highest payment potentials, analyse their industry trends and other testing strategies and prioritise your collections accordingly. You can use a third party analysis to understand which customer has the best financial health and make your targets accordingly.
Monitoring debt accounts will enable you to analyse if the customer can return the money. Once the customer’s ability to pay increases you can collect the unpaid balance; you can do this by monitoring an accounts credit score and its usage patterns. By doing this, you can collect your debt before your competition does.
Make it easy for your customers:
Everyone knows that customers need to have an easy method to pay back the money. But very often this essential element is overlooked. You need to make sure that your company offers all standard payment methods also ensure that all your invoices have the correct contact information. Your payment envelope needs to have the correct remittance address.
Review your company on various procedures:
Before pointing the fingers at others, we need to first check if everything from our side is proper. You can check all the proceedings of the company and determine if there is anything wrong with your party. For instance, you can check if your invoices are being sent on time, if the information on the invoices is accurate and if they were sent to the correct address. You also need to check if follow up contact is made with the customers on a regular basis and if your firm keeps the delivery and quality promises.
Provide an online platform for your customers:
In this digital world, everyone prefers to pay online and make cashless transactions. To make your debt collections much easier you can enable the usage of digital platforms where you can negotiate with your debtors and will allow them to pay the past due online. You don’t have to run behind them, or they don’t have to take the time to come to the place you want them when you have an online platform where all the negotiation and payments can be done.