5 debt collection or business executives walk in every day

Customers who fail to pay for goods or services that you have provided are not particularly pleasant. It’s also not fun to mop up missing payments from customers, and maybe you postpone it to the last minute in the hope that they’ll settle for it unsolicited. Then you have already joined one of many very common debt collection cases. And if you are in the trap first, unfortunately, it goes badly for yourself and your business. Here are five debt collection companies business leaders go in every single day – and tips on how to avoid them.

 

1. Billing too late

Bills are fresh and the willingness to pay is greatest right after the customer receives goods or services from you. It costs you time, energy and money to follow up unpaid invoices after a long time. The likelihood of them going into oblivion is also great. In addition, it is poor customer service to leave customers waiting long for an invoice. Many often have earmarked money for what they have bought from you and want to settle for it as quickly as possible. If you wait too long, customers may think that an error has occurred, forget the whole deal, or think that they have already paid the bill. The earlier you act, the less you lose.

So the question is: How early? The invoice should be sent out together with the item or service, and you must have established routines for outstanding claims before it occurs. Send the case to the debt collection already 14 days after the bill has expired. When transferring a case to debt collection, be aware of the following:

  • Who the debtor is and include contact information, birth number and address to the person. If the customer is a company you should also have the organization number.
  • Know that what you bill is actually delivered according to agreement. If a complaint or dispute has arisen, this must be handled before you can collect the money through debt collection.

 

2. True with debt collection with no intention of following up

debt collection with no intention of following up

It is rarely a good idea to threaten their customers, even those who do not make up their minds. Unless you receive complaints about the invoice, you should follow the predetermined cash collection process. Practicing the word debt collection without having any intentions to take the matter further means in practice that you are giving the customer incorrect information, which is a violation of good debt collection practice.

 

3. Send too many calls

call center

Many companies have an incorrect picture of how the collection process should be carried out. For example, it is unnecessary to send purrs on overdue bills. Ideally, one should send a collection notice 14 days after due date on the invoice as the first payment, remember to impose a cleaning fee. Here’s how to avoid a tedious “race”. If you are uncertain about the regulations, you should read up or ask for help from a collection company.

 

4. Submit debt collection claims

debt collection claims

It is sad to find that a customer is complaining about an invoice or is not satisfied with what you have delivered, but the situation is not improved by paying the payment. It is both unlawful and terrible customer service to file collection claims in disputes. Disputes must be settled in the Settlement Council or in the court system before you can claim payment and use debt collection as a means.

 

5. Unclear language

debt loan

There is a difference between a bankruptcy, a debt collection notice, and a debt collection claim, but many business owners use these terms for each other. It can make the situation confusing and confusing for both you and the customer. A collection notification has clear form requirements and, for example, you cannot send a reminder after sending a collection notification. Neither can you impose a cleaning fee unless it has been 14 days from the due date. Therefore, be clear, use the right concept and follow the law.

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