SET YOUR GOALS BEFORE TO APPOINT A DEBT COLLECTOR

For you as creditor, it is essential to analyse your credit and collection environment and set your goals before you consider appointing your debt collection partner. It is similarly important for your debt collector to know your objectives. Let’s analyse this further.

Don’t let debts drag on

Debt management ‘s first priority is to prevent bad debt from happening. This is best done through a close follow up of payments (and unpaid items), a feedback on disputes, good sales conditions and an excellent sales administration (order forms, proof of delivery).

Nonetheless, unpaid items will pop up regularly. Hence organize yourself to spot them on time. One day overdue is when you should ideally send your first reminder (always friendly).  Add another one after a week and it will solve most issues.  However, an as-small-as-possible part of your invoices will remain unpaid after these internal efforts.

Your aim is obviously to get them paid in. And you don’t want to spend too much time and money to obtain such result.  Discuss it with your debt collector.  For your debt collector, fresh and well documented claims are evidently less expensive to collect. As he charges on a success fee basis, he can lower the fee if you entrust him fresh claims.  You’ll pay less for better results.

Organize clear supporting evidence

It is necessary for you to have all information at hand when you write to your client or call him.  Similarly, your debt collector will need all information you have otherwise he will need to invest more time. Besides, he will need to contact the debtor and you several times back and forth, generating useless work for all.

Handle disputes

The debt collector also prefers claims without disputes. Disputes take time to analyse and solve. There are less disputes where your process is well thought of and clearly documented. Hence, if your claims are supported by clear factual evidence, the debt collector can lower his price. Again, you pay less for better results.

Be systematic

In many cases, a client that doesn’t pay just needs a professional follow up. Maybe he didn’t get the invoice. Maybe he is too busy with other issues. Sometimes he is just not good at administration. Reminding him is normal and he knows that. We don’t know of a debtor who blamed the creditor for following up and maintaining the communication on unresolved open invoices. Organize yourself in a professional systematic way.

Outsourcing the claim to a debt collector is part of this professional and systematic attitude. No TCM client has ever lost his client due to TCM’s actions.

Analyse results

Make a spreadsheet with your invoices listed in lines. Order them by the month/year of the due date. Enter the amounts paid after 1, 2, 3, … months. Compute percentages paid after 1, 2, 3, … months and summarize per month/year due date. Check if new policies make figures better. Set goals and adapt policies.

Conclusion

Prevent claims as much as possible through optimisation of the sales and after sales process. Outsource after tow reminders and provide all information to your debt collector. This will maximise your cash flow and minimise the costs that the debt collector charges you.  Measure the results and adapt your system according to goals.

You wish more details on what we can do for you? Please don’t hesitate to contact TCM.  Surf our website or contact us!

SET YOUR GOALS BEFORE TO APPOINT A DEBT COLLECTOR

For you as creditor, it is essential to analyse your credit and collection environment and set your goals before you consider appointing your debt collection partner. It is similarly important for your debt collector to know your objectives. Let’s analyse this further.

Don’t let debts drag on

Debt management ‘s first priority is to prevent bad debt from happening. This is best done through a close follow up of payments (and unpaid items), a feedback on disputes, good sales conditions and an excellent sales administration (order forms, proof of delivery).

Nonetheless, unpaid items will pop up regularly. Hence organize yourself to spot them on time. One day overdue is when you should ideally send your first reminder (always friendly).  Add another one after a week and it will solve most issues.  However, an as-small-as-possible part of your invoices will remain unpaid after these internal efforts.

Your aim is obviously to get them paid in. And you don’t want to spend too much time and money to obtain such result.  Discuss it with your debt collector.  For your debt collector, fresh and well documented claims are evidently less expensive to collect. As he charges on a success fee basis, he can lower the fee if you entrust him fresh claims.  You’ll pay less for better results.

Organize clear supporting evidence

It is necessary for you to have all information at hand when you write to your client or call him.  Similarly, your debt collector will need all information you have otherwise he will need to invest more time. Besides, he will need to contact the debtor and you several times back and forth, generating useless work for all.

Handle disputes

The debt collector also prefers claims without disputes. Disputes take time to analyse and solve. There are less disputes where your process is well thought of and clearly documented. Hence, if your claims are supported by clear factual evidence, the debt collector can lower his price. Again, you pay less for better results.

Be systematic

In many cases, a client that doesn’t pay just needs a professional follow up. Maybe he didn’t get the invoice. Maybe he is too busy with other issues. Sometimes he is just not good at administration. Reminding him is normal and he knows that. We don’t know of a debtor who blamed the creditor for following up and maintaining the communication on unresolved open invoices. Organize yourself in a professional systematic way.

Outsourcing the claim to a debt collector is part of this professional and systematic attitude. No TCM client has ever lost his client due to TCM’s actions.

Analyse results

Make a spreadsheet with your invoices listed in lines. Order them by the month/year of the due date. Enter the amounts paid after 1, 2, 3, … months. Compute percentages paid after 1, 2, 3, … months and summarize per month/year due date. Check if new policies make figures better. Set goals and adapt policies.

Conclusion

Prevent claims as much as possible through optimisation of the sales and after sales process. Outsource after tow reminders and provide all information to your debt collector. This will maximise your cash flow and minimise the costs that the debt collector charges you.  Measure the results and adapt your system according to goals.

You wish more details on what we can do for you? Please don’t hesitate to contact TCM.  Surf our website or contact us!

Don’t wait another second – collect your money

Focus on your business, we’ll take care of your outstanding payments. Contact us to find out more.

Don’t wait another second – collect your money

Focus on your business, we’ll take care of your outstanding payments. Contact us to find out more.