Debt monitoring is a simple and effective tool that considerably speeds up payments. Thanks to it, suppliers of goods or service providers have greater opportunity to maintain their financial liquidity. It also brings about long-term benefits, since systematic monitoring improves payment discipline of our customers. Each company that monitors its receivables has got its own system of work. The majority of enterprises also have special software facilitating payment control. In practice, such actions involve contact by phone and talks with customers and correspondence in paper form.
The payer should be first contacted even before the maturity deadline has not expired. Under the pretext of confirming the receipt of invoice by the customer, it is advisable to call it and remind about the fixed maturity date it should be paid on. This is not yet common practice in Poland, while it is worth to overcome our prejudices and try such a preventive action. This way we clearly inform the customer that we are not going to tolerate any delays.
A next call should be made on the exact maturity date or just after its expiration. We should then make sure if the customer had made the payment. If not, it makes no sense to postpone the intervention! We must firmly remind the payer about the necessity to make the payment and fix another non-extendible date of repayment. If the creditor has not received the money into its account following such second deadline, it should call the payer again or send a letter with the final order for payment. It is worth to make reservation during our talk with the debtor that if it does not comply with its payment obligation, the case will be submitted for debt collection.
Debt monitoring usually lasts about 30 days. Then, unpaid receivables are automatically processed to pre-litigation debt collection. Companies frequently monitor their payments on their own. It should be noted, however, that if a given company has got many customers and big quantity of receivables, it may encounter problems with their efficient and effective monitoring.
Introducing such a control system involves great engagement of the finance department, which multiplies time-consuming duties for the employees. Monitoring also poses a great challenge for small and medium enterprises, which usually do not have enough employees to burden them with additional tasks. Apart from that, entrepreneurs often prefer not to demand payment, especially as far as small amounts are concerned, being afraid that such action will deteriorate their relationships with the customer. Employing a professional debt collection company to provide such service solves the problem. Moreover, an outsourced company command greater respect and is more effective in motivating payers to make their payments on due dates.
If an entrepreneur decides to employ an external company, permanent cooperation between the ordering party and monitoring company constitutes the key to correct course of monitoring. The necessary information is usually provided by electronic mail, and the employed company notifies the customer on the course and results of undertaken actions an ongoing basis.
Published on: 14 November 2016