Collecting commercial debt is tricky, at the best of times.
To make things easier on yourself, consider the following:
- Have a good admin system in place, where all the necessary documentation, per client, is kept in good order:
- the credit application (with terms and conditions)
- Credit Risk Assessments
- invoices, statements, proof of delivery
- client details (contact details of relevant key personnel)
- know days outstanding, start contacting non paying clients asap
- obtain credit information reports on all clients, at least once a year – and decide on the probability of doing business with each client
Step 1 – How old is the account?
If it is under 90 days old, then you can try to collect without a collection agency. If it is older than 90 days, then it is better to give the account to an agency. Just looking at the numbers, a collection agency will have a better chance to get your money back.
Step 2 – Decide who will handle the debt.
Then move to step 3.
If you think a collection agency will handle the debt then it is best to choose the right one for your needs. Different industries use different language and the more a company understands the language and the industry used in it, then the more likely they are to collect for you.
If you decide to contact the debtor yourself, make sure you document all of the communication. Even if the debtor does not respond, make note of the attempted communication. The squeaky grease gets the wheel as they say, and this is just as true in debt collection.
With proper credit management, defaulting debtors need not be a headache.
Call us now on 011 907 4406 to be of assistance.