Debt collection occurs in nearly all operating businesses. In the tough economy today, a lot of customers may not be able to fulfill their financial obligations to their creditors. When your invoices are not getting paid, you may want to hire a New York collection attorney to help you get collect such debts. This type of attorney is an expert in B2B debt collection. Just like in other industries, there could be positive and negative ways to collect debts. You can increase your chances of successfully collecting debts when you take the following steps:
Be Prepared
Before you start contacting a delinquent customer, ensure you know everything about them. Have copies of all contracts, invoices, and other information that can help you speak professionally and knowledgeably with this customer.
Document Everything
As you speak with the customer regarding the money they owe you, take notes of everything discussed during this conversation, including the comments of the customer. You may be able to use this information when a debt dispute will arise in the future. If you have tracking software, enter all details into the system while you can still remember what transpired during the conversation. Over time, add more details to this file.
Do Not Make Assumptions
Before you make the first collection call, ensure the debt has not been paid. Avoid alienating the customer. Keep in mind that you may make business with this customer in the future. The outstanding debt could be a mistake, not a collection issue. So, be careful with how you talk to them about their debt. As you listen to their side, document the interaction accurately.
Control Yourself
Did you know that your tone when collecting on a debt can affect the success of the conversation? Initiating a friendly, non-confrontational conversation may let the customer respond more positively. After you have confirmed you are talking to the right person regarding an unpaid invoice, try to ask them if there is something you can do to help. Acting like you care may prevent the customer from becoming defensive. But ensure you stay detached from the situation.
Provide Options
When your customer is having problem paying off debt, they may be able to make payments in the future. So, work out a payment plan that works for you and the customer. Focus on getting this customer to pay the full amount as quickly as possible. A debt collection attorney will listen to the customer and provide options until they have defined a workable agreement.
