When you have a good amount of unpaid accounts just sitting there collecting dust, you might be looking for quick and easy ways to increase debt collections. What is the fastest, easiest, simplest way to collect debt from consumers?
Unfortunately, there is no quick and easy way to collect debt. In many cases, it takes repeated and consistent efforts over a period of time to collect debt — especially if you’re dealing with late-stage accounts. However, there are simple changes you can make in your debt collection tactics and strategies that can result in better relationships with your debtors and ultimately, an increase in your debt collections results.
Let’s take a look at a few of those tactics now.
Be patient (and nice)
This one should go without saying, but unfortunately, it does not. Many small to medium sized businesses attempting to collect debt do so without a smile on their face. They might even be annoyed that they’re in this situation to begin with. This will only make matters worse and likely, result in accounts that remain uncollected. Be nice and remain patient. Do your best to empathize with your debtors and don’t be aggressive and scare them off as a result.
In many cases, you won’t reach a debtor even after multiple calls and letters. There are two things to remember at this point:
- Don’t give up.
- Be consistent.
Remember not to get discouraged if you don’t collect on accounts right away. Keep going for as long as possible. And if you can, develop a routine. Call once a week. Send out a letter once a month.
Here’s another good tip to remember: Not all accounts are created equal. Make the time to prioritize your accounts and distribute your time in a way that makes the most sense. Should you really spend hours trying to collect on an account that is only worth $150? That’s up to you, but the answer is likely no.
If you want to collect on accounts quicker, then you need to get modern. You’re expecting too much if you expect consumers to mail you back an actual check. Download a tool or software that lets people safely make a payment online or find a way to collect payment over the phone.
Whether it’s your smallest account or your biggest account, you don’t know what kind of situation your debtors are in. Because of this, find a way to offer payment plans. You can even consider coming up with your lowest payment offer. In other words, what is the lowest one-time payment you’re willing to take to clear the account? You’d be surprised how many debtors will take you up on this opportunity.
If you try out all the tips above and you still find yourself struggling to collect debt — whether this is because you just don’t have enough time, the right skills, or the proper resources — then it might be time to partner with a debt collection agency. If you think this might be the right move for your business, check out our article: 3 Simple Ways To Determine If Your SMB Needs A Debt Collection Agency.
You can also reach out to our debt collection specialists online or over the phone. We’d love to chat with you about the benefits of partnering with a debt collection agency.