Are Your Emotions Impacting on Your Credit Control?
As the country continues to get to grips with COVID-19, debt collection becomes ever more serious.
“The benefit of working with a third party is that there’s no emotion involved. Debt collection is a very sensitive subject, and there could be all sorts of factors that cloud one’s judgement.”
“For example, the client may have worked with their debtor for a number of years, and feel disillusioned with having to chase payments.”
Maintaining Good Relationships
Studies show that up to 90% of debt collection cases are settled when a client brings in a third party.”
“This is a prudent move due to the lack of personal involvement.”
“By using a third-party credit controller, there’s no hesitation or fear of appearing impolite”
“We have to follow a strict set of protocols to make sure we find a legal solution to settle the debt.”
“These protocols include timescales, for example meeting one requirement within seven days, otherwise you fall back to the bottom of the pile. Our job is to make sure you’re always at the top.”
“Deadlines spur action, as they say.”
Devising the Best Solution
So, how should you go about debt collection?
“Firstly, all contracts should include a payment clause, for example, adding fees in line with the Late Payment of Commercial Debts (Interest) Act 1998,” advises Wendy.
“This manages expectations before taking on any new contracts, while maintaining a good client and supplier relationship.”
“It’s a myth that calling in a debt collector is the end of your professional relationship. We work hard to come up with the most amicable solution, most often a payment plan.”
“By working with a third party, you don’t have to deal with conflicts and egos.”
“An advantage of working with a credit controller on a long-term basis is that we can soon spot patterns and excuses with late payments, and be ready for action long before you realise there is an issue”
“This is where our expertise lies, and we’re thrilled to say we have a 99% success rate in collecting payments. It’s more cost-effective to outsource credit control, and to put your trust in the experts.”
“We know the difference between a one-off late payment and a repeat offender.”
“The average debtor days for one of our clients is currently below 25 days, while the industry average for their sector is 53,” concludes Wendy. “Those stats alone speak for themselves.”