Tuesday 3 July 2012

Debt Collection Process Strategy - Getting Paid For It

Mahnbescheid Kosten: If you own a small business these days more than likely you will have a lot of past out standing dues and an unpaid accounts receivable amount. If in case your own business is a business to business small company you even may have as much as 40 percent of your total accounts that are now unpaid. As a result of this small businesses are now seeking a professional debt collection process strategy that is very easy and totally effective.

It can also be very costly and expensive in terms of time to collect the out standing debt. Simply sending out an additional tax invoice in most the cases does not work well. This conventional method usually results in just small enough of a return to cover the total cost of all those additional mailings. In many of the cases a small business will also consider writing the bad debt-off if the total amount is even less than $30 just because of the cost of the debt recovery. However this may be a very poor debt collection process strategy.

Contacting the past due debt account holder by telephone is another strong option. If at all you opt for this strong approach you will need to be very well prepared prior to making the very first call. Many people have a very short script to use when ever calling. It is very important to note that using such collection methods that actually result in an emotional prompt response are the most effective. However you should also remain very calm during your voice pitch to the customer or client. You can even use the threat of stopping the services, turning the debt account over to a debt collection agency or even notifying a credit reporting company or firm to provide a basic leverage or some incentives for debt clearance and payment. The largest ever risk in making debt collection calls comes from the possible losses of the business account as a result of the verbal but professional confrontation. Again using this collection method of debt collection takes very long time and can also cause a lot of stress on the person who is making the debt collection phone calls. In general we even do not recommend this debt collection process strategy.

Many of the businesses have to totally rely on a conventional debt collection agency to collect all their past due accounts. It can be extremely very expensive and is not at all feasible for smaller accounts. It is not even uncommon for a debt collection agency to require an upfront fee charge of around $4000 or even more before they even begin the debt collection efforts at all. In addition to this you will also be charged for each of the account that is to be or collected.

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