7 tips to recover a creditOn December 19, 2019 by Ethelyn Murphy
How many of you will have had credits to collect and not be able to get paid? Call and they tell you: tomorrow I will pay, I have already given orders to the administration, I have no money you have to wait a month, I have already made the bank transfer I will send you the CRO number. But nothing happens on your checking account.
So what to do? Here is some good advice.
1) As soon as the payment expires, solicit your debtor
It is always good to intervene immediately, since statistically the longer you delay soliciting a credit, the more difficult it is to recover it.
If the debtor does not pay within a few days of the call, call him again and write a reminder letter and send it by registered mail.
It is often effective to send a copy of the reminder also to the owner or administrator of the debtor company, directing it to the address of residence. It is a good way to inform the top management about the company’s behavior and put some pressure on them.
2) Maintain contact with your debtors
Verbal contact is always the best thing. It is the one that is most successful.
The payment request is important, sometimes necessary, especially if you will be forced to operate the credit judicially, but it is often abandoned on the desk along with many other payment requests.
Therefore, if the reminder has no effect, do not wait and call the debtor or go find him.
The best strategy is that of constant contact.
Be determined, don’t give up, and never let more than 10 days pass between phone calls.
3) Handles phone calls and correspondence well
Carefully educate your staff to manage contacts with debtors.
Prepare the text of a phone call and a reminder letter of payment to be sent by email and subsequently by registered mail. Everything must be prepared in detail. Precise instructions and convincing calls.
It is also important to try to talk to the owner or the administrator and not to stop at the accountant and the switchboard operator who answers the phone.
4) Check your debtors
It is always good to distinguish debtors based on income and risk levels.
Furthermore, it is important to differentiate the debtors who do not want to pay from the debtors who cannot pay.
Always having a precise idea of your customers allows you to make a forecast of the receipts and to evaluate to interrupt commercial relationships with the bad payers.
5) Do not neglect the personal information
It may happen that a registered letter comes back. Keep a database constantly updated with the personal data of your customers (street, house number, postcode, city, registered office, commercial headquarters, owners’ residences, telephones and mobile phones).
6) Make a targeted order acceptance policy
If possible, adopt payment methods by POS (debit or credit card).
For important orders, before concluding the deal, carry out investigations on the financial health of potential customers. Often reading a company’s balance sheet and chamber size can give you a lot of information unknown to you. Or search for references with other entities that have business relationships with new customers.
7) Get signed a debt recognition and repayment plan
If the debtor still does not pay, have him sign a declaration in which he acknowledges that he has a debt and which provides for a repayment plan (read more).
This will make it possible to reverse the burden of proof (the debtor will prove that the debt does not exist) in case of having to request the issuance of an injunction.
If all that we have written does not bring any benefit, all that remains is to rely on a lawyer who judicially proceeds to recover your credit.
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