This is the final in a three part series on debt collection. The first, you will recall, dealt with “…all about being methodical” and the second, about “….getting it in writing”. Provided one is methodical, it is not difficult to implement a simple system which, apart from anything else will keep you focused on the fact that work which you have done, has still to be paid for!
It is obviously of utmost importance to ensure that the credit application is properly completed by the customer, before all else. Be suspicious of gaps and vague answers, or the hasty request that goods be delivered now and the paperwork be dealt with at a later stage, when more convenient! The data on the credit application will be crucial for any legal proceedings which may flow from handing over. If you do not have one, then DebtLegal can assist in this regard.
The second priority is, immediately invoicing has taken place, for a diary system to be implemented. Immediately the account is overdue then the first step (which would be the phone call) must take place and there should be clear understanding in the team, as to who will be doing what.
Remember, immediately the first telephone call is made, a confirmation (either by fax, email or sms) must be sent, recording the date on which the debtor has indicated, that payment will be made. The reason for this may seem obvious but it cannot be underestimated how powerful this written record will prove at a later stage, when the debtor is still in default and now coming up with the usual excuses about ‘wrong size’ and “wrong colour”!
Once you have grown weary of the broken promises and have decided to “hand over”, the good news is that it is not the huge administrative exercise one would expect and is in fact, a very simple process. All that is required is a copy of the debtor’s credit application (which, of course, will have all pertinent contact details, whether the debtor is a company, close corporation, etc) as well as a copy of the detailed ledger “printout”, which shows the amount owing and the ageing. It’s really as simple as that!
Remember that if debtors are handed over to DebtLegal within 100 days, the recovery fee is only 10%. Contact us for more details.