Three Effective Debt Recovery Strategies

When you a hire a reputable and professional debt recovery team, they will have a variety of strategies they use to make sure your debts get paid and customers are not harassed during the collection of those debts. While every company has its own proven strategies, there are three tactics that debtors appreciate most, and consequently, have the best results.

Sympathetic Ear

When a debt collector calls, debtors expect to get an earful. If your company uses effective techniques though, the opposite is true. They ask customers what caused them to get into this situation and take the time to listen to their personal situations. This gives them valuable insight into how they can help the debtor climb out of their debt hole and allows them to feel understood. This kind of patience and empathy can go a long way.

Helpful Solutions

When debt recovery agents simply demand payment despite a customer’s true inability to pay, it can be very frustrating. This is what causes them to avoid any attempts at debt collection. As much as they’d like to take better care of their credit management, they’ve simply dug themselves into too deep a hole and can’t seem to find a way out. When a helpful solution is offered though, they can see light at the end of the tunnel and will be much more likely to discuss payment possibilities.

Flexible Terms

Even if they find that one of the payment options will work from them right now, it’s important to mention that the terms are flexible. This means, should they get in trouble down the road, they simply need to communicate it to their collector. Then, they can rework their plan to find a new and better solution that meets their new situation. Keeping that line of communication open is the key to successful debt recovery.

Written by Richard Thompson

Richard Thompson is the Managing Director and owner of JMA Credit Control and has over 25 years’ of trusted experience. Richard has a wealth of knowledge in Credit Management and Debt Recovery ensuring client’s recovery bad debt quickly and cost effectively.

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