The entrepreneurs are often prejudiced against taking of debt collection actions since on the basis of their experience they become convinced that this process lasts long and as a consequence is time-consuming and stressful as well as does not allow to concentrate on the everyday activity of the company. There is a lot of truth therein, yet solely in relation to improperly conducted debt collection, usually independent, without proper knowledge and employees specialised therein.
When we need money quickly and the capital is frozen in the invoices that are not paid on time, specific actions aimed at its recovery should be taken.
Firstly, we should conduct detailed monitoring of receivables and check which business partners have forgotten about the payment terms. Then, we should contact them immediately. We should also not forgive the loyal customers when they are delayed with the payments for ‘only’ a couple of days. If it has not happened before, we have a clear signal that the situation in the company could have changed dramatically. It is better to react than regret later not having taken any action on time. Secondly, the intervention should be immediate, should be repeated regularly and should bring specific information, i.e. when the debt will be paid, without agreeing to excessive compromises. The art of negotiation with dodging businessmen is not an easy thing, so this is why it is good to order it to the specialists experienced in dealing with reluctant debtors. Outsourcing of services of this type is a solution that is often used by companies, since after an accurate analysis it is more profitable than the ineffective and laborious attempts to recover the debt on their own.
Time is money – in case of debt collection, it is not an empty slogan. The sooner we commence collection of the debt, the more money we can recover. The more efficiently the entire process is conducted by the specialists, the sooner the entrepreneur sees their money on the account.
And what if we need the money now? In such case, there is a possibility of debt collection with the option of advance financing of the future payments from the debtor. In this way, the company receives the financial means right after signing of the agreement, while the debt collector performs the actions aimed at enforcement of the payment from the debtor. Debt collection with advances is not the only option of fast acquisition of money – you may read about other solutions in the earlier text from our Guide, entitled: Before the debt collector recovers the money, when the bank refuses to grant a credit…
Published on: 23 October 2016