Especially in a Downturn You really should have a Debt Recovery Procedure that’s Seamlessly Integrated into Your Accounts Systems

The overwhelming majority companies have a Credit Control Department. Even the majority 1-Man firms have a policy and system of some sort. The upset for many companies comes when the debtor simply doesn’t pay. The Accounts Team send out statements and reminders, until, at a certain point they send out a final demand, before finally handing the responsibility for the debt over to a specialist debt recovery firm.

At this point the business relationship with the debtor is thoroughly damaged beyond repair, and you, the Creditor have lost control of how the debt will be recovered.

A much better way to overcome this problem is to use a little psychology. If the debtor is made to understand that he’s being closely monitored and to some degree pursued by a relentless system that clearly convinces him that once he’s crossed a certain line, inevitable additional costs will be imposed, he’s much more likely to start to play ball. Especially when it’s further made clear to him that the more he delays, the greater the additional costs will be.

To use this plan effectively, you need a Debt Collection Process which seamlessly follows on from your usual existing Credit Control process. A single Debt Collection Letter is not the solution. In order to get paid without going to court, your Debt Collection Process needs to include a series of Debt Collection Letters, each one stepping up the consequences, and warning of real financial penalties for none payment. These penalties are then seen to be automatically applied by subsequent letters in the process, until the debt is paid.

In well over 85% of cases, implementing a proper integrated Debt Collection Process into your relations with slow and bad payers will eliminate the problem of very slow and none-payers.

In the minority of cases where you may have to take your case before the county court, using a Debt Collection Process will make sure that you have all the relevant documentation in good order, and you’ll be able to put an unassailable case before the court. On top of that, you’ll have a very clear and accurate idea of the extra charges you’ll be able to claim for your administration and late-payment interest.

The best thing about integrating such a process into your systems, is that its seamless character & progressive build up of real financial penalties makes sure that you always become “the creditor who must be paid” regardless of how tight finances get.

Using a Seamless Debt Collection Process, you re-educate your customers into always paying you on time. You may even find that they go on to implement the same system as you. Then you know you’ll have a good secure customer for years to come.