Sound collection procedures and processes do not always stop bad debt occurring. The important step is knowing how and when to increase the severity of the action to be taken to recover these bad debts.
Early communication with the debtor is on one of the key steps to ensure recovery of the debt.
This contact needs to be consistent and measured to determine what action mostly achieves the desired result.
There are various collection processes that can include:-
- personal contact with your client either face to face or via the telephone
- written demand requesting payment
- use of a debt collection agency
- legal action
Collection of your overdue accounts should be a daily task not just looked at when cash flow is poor.…Continue reading