Once you have hired the debt collection agency that is right for your business, what do you do while you are waiting for your money?
It is important that you remain part of the process and assist your debt collection agency.
The most important thing you can do is to let the agency do their job. Stop billing the customer. All contract should come from the collection agency. After ignoring you for months, customers will suddenly surface when they realize they have been referred to a debt collection agency, and promise to pay if only you take them “out of collections”. Remember why you sent the file for collection in the first place. In our experience, every time this happens, one payment at most is paid, and the file is sent back to us within a month or two. Every.single.time. Stay strong. Send the customer back to the agency. If you have an idea about settlement or payment plan for that customer, contact your agency to discuss and let the agency put the plan in motion.
Next, whenever possible, stop providing service or product to a customer in collection. Do not provide them any more credit. Imagine the mixed message you are sending to a customer when you give them more credit while asking your collection agency to collect an older debt. Stop, now.
Successful debt collection relies heavily on “skiptracing”, research to find debtors and their assets. Be the eyes and ears of your debt collection agency. If you receive any information, even if it appears insignificant, pass it along. You would be amazed at what your agency can do with a small bit of information.
Many customers will send payment directly to you. They are doing this because your agency is working hard on your behalf. Report the payment to your agency immediately. The worst thing you can do is to have your agency continue calling customers who have already paid. Keep your agency in the loop.
In short, remember that your debt collection agency is a business partner. Work in tandem with them, not against them. Your results will make the effort worthwhile.
Once you have hired the debt collection agency that is right for your business, what do you do while you are waiting for your money?
It is important that you remain part of the process and assist your debt collection agency.
The most important thing you can do is to let the agency do their job. Stop billing the customer. All contract should come from the collection agency. After ignoring you for months, customers will suddenly surface when they realize they have been referred to a debt collection agency, and promise to pay if only you take them “out of collections”. Remember why you sent the file for collection in the first place. In our experience, every time this happens, one payment at most is paid, and the file is sent back to us within a month or two. Every.single.time. Stay strong. Send the customer back to the agency. If you have an idea about settlement or payment plan for that customer, contact your agency to discuss and let the agency put the plan in motion.
Next, whenever possible, stop providing service or product to a customer in collection. Do not provide them any more credit. Imagine the mixed message you are sending to a customer when you give them more credit while asking your collection agency to collect an older debt. Stop, now.
Successful debt collection relies heavily on “skiptracing”, research to find debtors and their assets. Be the eyes and ears of your debt collection agency. If you receive any information, even if it appears insignificant, pass it along. You would be amazed at what your agency can do with a small bit of information.
Many customers will send payment directly to you. They are doing this because your agency is working hard on your behalf. Report the payment to your agency immediately. The worst thing you can do is to have your agency continue calling customers who have already paid. Keep your agency in the loop.
In short, remember that your debt collection agency is a business partner. Work in tandem with them, not against them. Your results will make the effort worthwhile.