Debt Collection Techniques:
Don't Give Up Customer Service While Doing Debt Collections!

by Dave G
(NJ)

In our service oriented industry, debt collection can be a tricky situation. For most businesses, they have two choices: a.) collect the debt themselves and possibly hurt their relationship with their customer b.) hire an expensive collections agency to work on the case.

Perhaps the most important thing while doing debt collecting in order to ensure that the business relationship remains intact between client and vendor is customer service.

Times are rough, especially as most businesses try to stay afloat, therefore it is doubly important to keep those revenue generating relationships while maintaining those who are in debt from your services.

First, I would remain compassionate yet firm regarding your client's circumstances.

Secondly, get the facts! Do you know if your client is planning an up-coming expensive project, money which should go to them paying you off? Have their profits gone down recently or have they gone? What are their current circumstances?

Third, be flexible. Would you as a business owner be able to work out some sort of payment plan? Would they be willing to make some sort of signed agreement of payment?

And lastly, don't let yourself get taken advantage of. It's one thing being compassionate and flexible, it's another thing being a doofus sic. Don't let someone else take you for a run just because they're your client! Always remember, if you lose the business relationship it's not like they were paying you anyway!