Debt Collection Tips For 2021

Chasing customers for late payments is never an enjoyable task, but in the era of Covid it can feel downright impossible. But just because 2020 was a rough year for everyone, doesn’t mean you haven’t earned the money you invoiced for, and you have every right to request prompt payment. But how do you go able collecting on debts in such difficult times? We have a few suggestions for you.

Don’t Assume Anything

When you first pick up the phone to chase a late payment, don’t instantly assume the payment hasn’t been made. There are all sorts of reasons a client’s money might not have reached your bank account, and if they think they’ve paid you they probably won’t appreciate an angry accusing phone call! Instead, frame that first call as a check in, ask if everything is OK, mention that you haven’t received a payment for your invoice, and let them know you just wanted to see if there were any problems you could help solve. Then wait, and listen to what the customer has to say. After all, they could have paid money into the wrong bank account, marked the wrong invoice as paid in their systems, or be having some internal issues that mean you have just slipped through the cracks, Make sure you document what is said accurately, just in case, but never assume a client is trying to avoid paying you.

Be Prepared

Our single biggest piece of advice for this year is to be prepared. Not necessarily in an aggressive way – like getting all of your court documents ready the second an invoice goes overdue. But be prepared for more invoices to be late than usual. Even though there has been some financial aid, and even though there is an end in sight, it’s still a very difficult time, and a lot of businesses are struggling to keep their heads above water after nearly a year of lowered sales. So be prepared for those late invoices, and do what you can to minimize their impact on your business. This way if they do become overdue, you aren’t instantly panicking.

Be Kind

Above all, be kind. We know that it’s stressful when payments aren’t coming in on time, and it can put a lot of pressure on your business. And if you’re also feeling the strain of Covid-19 on your bank account, then it can feel overwhelming. But while you’re feeling stressed, remember that your customers probably are too. Tensions are running high for every business owner this year, and a little compassion can go a long way. During collection calls and emails, always try to remain calm and kind, and don’t let your stress get the best of you. Not only is this better for customer relationships, but it also stops you opening yourself up to legal issues later down the line.

Call in the Professionals

If, after numerous phone calls, emails and letters you’re still not getting any sort of response or payment from your clients, it might be time to call in some backup. A debt collection agency can help you handle these late paying clients simply and effectively, without damaging your relationship with your clients. Often, just bringing in a professional can make all the difference, and sometimes all that’s needed is a phone call to get the invoice paid.

At Debtcol, we pride ourselves on being able to get the best possible outcome for your business in the shortest amount of time. Our professional collectors are experienced in dealing with debtors of all shapes and sizes, and can work with you to collect outstanding debts, and ensure payment terms are set and met in a way you’re happy with. If you would like to find out more, just get in touch with the team today.