DEBT COLLECTION BEST PRACTICES

1. Create a Clear Payment Policy

Manage the expectations of your client from the beginning of the working relationship. Make certain that your client is handed a payment policy that is clearly outlined in writing. 

2. Instil Urgency

Make sure to send an invoice at the earliest opportunity, stating the payment terms clearly on the invoice. Email invoices to clients: this is the best way to ensure that your clients are receiving them. It is a useful tactic if you are regularly in contact with them via email, as they have no way to claim they have not seen the bill.

3. Review Regularly

Staying on top of the situation is essential to reducing overdue accounts. When an account becomes overdue, there is no reason to hesitate in following up with a polite email to your client. If your email goes unanswered, it is time to follow up with a chasing letter and than a phone call.

4. Arm Yourself with the Facts

Review all the paperwork on the debtor before making a follow up phone call. It is critical that you have the specifics of the debt you are calling about. Having the facts in front of you, keeps you in control. This will help to make sure you do not lose sight of your objectives and that you are not derailed by a question you cannot answer. Identify the person who will pay the bill and make sure you speak to the correct individual.

5. Keep Calm

Most of us take our speaking voices for granted. But the tone, pitch, inflection and even the speed at which you talk can have a powerful influence on your listener. Maintain a friendly and professional tone of voice. Remain calm and polite and keep your temper at bay. You will not do yourself any favours getting into an argument. 

6. Be Flexible 

Be ready to adjust to the situation. Think about the customer you are dealing with and adapt to meet the circumstances. Provide options for instalments and payment plans. Remember negotiating is a skill and there is a specific time and place for it. Know what to expect and when to push for more. 

7. Document Everything

Clearly document your payments on account and the circumstances of those payments. Whilst talking to clients about outstanding debts, take careful notes about everything that was discussed, including the client’s comments in case there are any future disputes.

8. Nail things down

Never, ever leave a contact open ended. All contacts should result in a commitment to payment. Once a payment plan has been agreed to, verbally recap the terms and send a written summary to the debtor. This should include specifics of when the debtor will send each payment and what form of payment will be used. Ask the debtor to call or email you once a payment has been made.

9. Hire a Debt Collection Solicitor

If all else fails and you cannot retrieve your debts on your own, its time to hire our debt collection team at Brophy Solicitors. 

To find out more about recovery of your debts, please contact Brophy Solicitors on (01) 679 7930 or email catriona{at}brophysolicitors.ie 

Catriona Sharkey

Brophy Solicitors