Debt
Pay Off
Calculator
Loan
Payment
Formula
Credit
Card
Debt
Advice
Bankruptcy
Chapter 7
Exemptions
Consumer
Credit
Counseling
Nonprofit CCCS
Consumer
Counseling
Service
Debt Counseling Assistance :: Debt Collection Strategies
Debt Collection Strategies:
Strategies for Debt Collection That Work
Custom Search
Are you dealing with a customer that won’t pay his bill and looking for debt collection strategies that work?
Perhaps you need a client to pay up, but want to make sure you collect your debt in a manner that’s legal and won’t damage other business relationships.
If you need to collect a debt and brink your books back in order, keep reading for 3 great debt collection strategies that really work.
Offer a Barter Credit
If a client is experiencing a serious cash crunch and can’t afford to pay, one of many debt collection strategies is to negotiate a barter trade instead.
You can draw up a contract for straight bartered services or participate in a barter trade network either locally or internationally.
For example, Toronto based Barter Network is Canada’s largest barter company, and offers companies barter credits that can be used and traded at will for services ranging from network support to advertising.
Working out a bartering agreement is a great way to retain a client, build your network of other suppliers and engage in cash-free, yet valuable business.
Negotiate a Payment Plan
Talk frankly with your client, explaining that you’re at a point where collection needs to happen or the problem may escalate. Tell the client that you’d like to work out a payment plan strategy to help settle the debt.
When implementing any payment plan types of debt collection strategies, always try to have a complete and thorough payment contract drawn up by a lawyer.
Start Early
Probably one of the best collection strategies is to focus on collecting your accounts receivables as soon as possible. While you shouldn’t be harassing clients with repeated invoices and phone calls after three days, there is a need for a strong initial push to collect a debt.
Research has shown that the probability of recovering a debt that’s past due declines at a rate of about 1 percent every three days.
That equals 10 percent per month. Meaning, if you haven’t picked up the phone until month 4, your debt collection strategies are 40 percent less likely to work.
See also:
All Articles for Debt Counseling Assistance
Custom Search
Only $12.95!!
Learn how to get out and stay out of debt using the powerful steps explained in
Your Guide to Debt Relief
Order Online
24 Hours a Day
7 Days a Week
365 Days a Year!
Copyright 2007
Debt-Counseling-Assistance.com :: Debt Collection Strategies