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3 Top Debt Collection Techniques To Improve Business Cash Flow
Effective top debt collectionNew Credit Card Debt Consolidation Loans. Read more ... » techniques are necessary for any business, regardless of the economic climate. Knowing how toSome Easy Ways Of Change High Interest Debt To Low Interest. Read more ... » get your customers to pay their past due debtsDebt Consolidation - Discounted Money For Debt Problems. Read more ... » on time will increase your cash flowInvoice Discounting Companies Can Facilitate Prolonged Business Growth Where Overdarfts Can Not. Read more ... ». After all, running a business, you have your own debts to pay. Absent an adequate cash flow, you risk falling behind on your own obligations, which leads to problems with suppliers, and/or loss of easy credit terms with your bankNew Rule Makes Now The Time To Settle Old Credit Card Debt Banks. Read more ... » or lender.
Mastering these top debt collection techniquesCollection Agencies And The Statute Of Limitations. Read more ... » often spells the difference between barely staying afloat, or thriving in your business.
Here are 3 top debtCredit cards can affect your debt management strategies. Read more ... » collection techniques to improve your business cash flow:
1. Change Your Payment Terms
Make sure you’ve clearly stated on your invoices, and any quotes you’ve provided, what your payment terms are. Most businesses allow 30 to 60 days before payment is due, but have you considered reducing your payment terms to 14 or 21 days?
Amending your payment terms might mean the possibility of getting your money sooner rather than later. Also, it means that an unpaid account becomes delinquent earlier, and within a month. You can then commence with collection activities before more time has passed.
2. Written Reminders & Follow Up Calls
Once an account has become past due, you can issue a written reminder to the customer to gently encourage them to pay their bill to your business. You need to be very careful with the wording you use in your debt collection letter, as the laws surrounding debt collection techniques are quite specific. Sending a written correspondence means you have a record of your attempts to collect the outstanding debt in case of future issues arising.
You should also call the customer and remind them of their delinquent debt, and to establish an estimated time frame to effect payment. Again, be careful in your communications, choice of wording, as well as the timing of your call.
Debtors are afforded protections under the Fair Debt Collection Practices Act (FDCPA), so make sure to adhere to these guidelines, regardless of the method of contact you choose.
3. Outsourcing To Third Party Collection Agencies
Sometimes, in spite of all your efforts, some of your customers won’t pay their debts. In spite of the fact some of your customers might be experiencing financialHow much does it cost to declare bankruptcy?. Read more ... » setbacks, this doesn’t help your business if they’ve already received goods or services from you in good faith, and now are unable to pay the bill.
When you’ve exhausted all other internal avenues of top debt collection techniques and options, then its time to call a third party collection agencyHow Personal Loans Gets Collected From Borrowers. Read more ... » to pursue the past due balance for you.
Conclusion for top debt collection techniques
Debt collection agenciesHow To Move On with Debt Collection If The Direct Approach Has So Far Failed To Bring Results?. Read more ... » are experts, and well experienced in the area of collecting past due monies. They are also fully knowledgeable of the laws, guidelines and regulations governing their industry. Representing your business, they will act on your behalf to collect the outstanding debt owed to you. The debt collection techniques used are designed to bring positive cash flow back to your business, sooner rather than later.
David P. Montana has been an author, lecturer and business consultant in debt collection services for thirty years. David would like to hear from you, and welcomes you to write about and tell us your success stories, as well as challenges, frustrations and concerns about debt collection techniques.