Customers who fail to settle their accounts on time and renege on payment are the scourge of any business. Attempts to recover these bad debts are both time-consuming and expensive. Bad debts harm any goodwill between you and your customers which may have been built up over many years, leaving that "never again" feeling.
A professional debt recovery letter can save you from all of that.
Debt recovery services provide a simple, cost efficient means of minimising the risk of reduced cash flow to your business. Often, the mere fact that you have employed a reputable debt recovery service to act on your behalf, may well be sufficient to encourage a defaulter to settle his account without the need for any further action. Remember, such customers are also less likely to default on payments in the future.
Debt recovery can be a long and complicated process. However, often all it takes is sending a debt recovery letter to persuade your customer to settle his account. Indeed statistics show that written demands result in a satisfactory outcome in over 60% of cases. With such a success rate, the "demand" letter is clearly a most effective way to recover outstanding debts thus precluding the need for further, more expensive action.
However, professionaldebt recovery services offer much more than just a simple debt collection service. As well as sending out debt recovery letters and then recovering overdue accounts on your behalf, they will offer advice at all stages during your relationship with your customers, that may well reduce the risks to you caused by bad cash flow. Adopting their expert advice can create significant savings for your business both financially and in improved staff morale with the reduction of pressure on your account manager, whose stress level will benefit from the increased cash flow.
When you are approached by a potential new customer seeking credit, your debt recovery service will be able to determine the credit history of this customer and therefore decided their creditworthiness in respect of your business.
From the information provided by the debt recovery service, you will be able to see if the customer has a history of late payments, bankruptcy or insolvency proceedings or indeed has any default judgements marked against them.
This service will also establish beyond doubt the correct legal identity of your potential customer, something businesses often overlook and which can severely hamper the debt recovery process.
A professional debt recovery service will review your existing credit management practices and in effect, ensure that they are "fit for purpose". They can, for example: –
A professional debt recovery letter can save you from all of that.
Debt recovery services provide a simple, cost efficient means of minimising the risk of reduced cash flow to your business. Often, the mere fact that you have employed a reputable debt recovery service to act on your behalf, may well be sufficient to encourage a defaulter to settle his account without the need for any further action. Remember, such customers are also less likely to default on payments in the future.
Debt recovery can be a long and complicated process. However, often all it takes is sending a debt recovery letter to persuade your customer to settle his account. Indeed statistics show that written demands result in a satisfactory outcome in over 60% of cases. With such a success rate, the "demand" letter is clearly a most effective way to recover outstanding debts thus precluding the need for further, more expensive action.
However, professionaldebt recovery services offer much more than just a simple debt collection service. As well as sending out debt recovery letters and then recovering overdue accounts on your behalf, they will offer advice at all stages during your relationship with your customers, that may well reduce the risks to you caused by bad cash flow. Adopting their expert advice can create significant savings for your business both financially and in improved staff morale with the reduction of pressure on your account manager, whose stress level will benefit from the increased cash flow.
When you are approached by a potential new customer seeking credit, your debt recovery service will be able to determine the credit history of this customer and therefore decided their creditworthiness in respect of your business.
From the information provided by the debt recovery service, you will be able to see if the customer has a history of late payments, bankruptcy or insolvency proceedings or indeed has any default judgements marked against them.
This service will also establish beyond doubt the correct legal identity of your potential customer, something businesses often overlook and which can severely hamper the debt recovery process.
A professional debt recovery service will review your existing credit management practices and in effect, ensure that they are "fit for purpose". They can, for example: –
- ensure that your printed Terms and Conditions of Trade are adequate and legal
- a strict control is placed on the limit of credit allowed to anyone customer
- pre-determined agreed days of credit are strictly adhered to
- penalties for late payment of account are clearly defined
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