As we wind down towards the end of the year, clearing out some of those outstanding accounts receivable is at the top of just about everyone’s corporate wishlist. Combining an influx of cash with one less folder in the delinquent pile could undoubtedly make for a more enjoyable start to the New Year.
If you have been tasked with attempting to resolve some of your company’s outstanding accounts to close out the year, we have put together a list of tips and tricks to help you get the job done as quickly and efficiently as possible. Let’s get to work!
Tip #1: Play by the Rules
The most important thing to remember in any type of debt collection situation is that you never want to jeopardize your company’s right to collect an amount that is owed by violating one of the many Federal or state rules and regulations that you should be following.
Most of these rules and regulations are based on common sense and respect, but you definitely want to be sure to follow them at all times.
Tip #2: Stay Calm
No matter what happens during your interactions with an outstanding debt, you always want to be sure that you stay cool, calm, and collected. Losing your cool will never be helpful in any situation, so avoid that at all costs.
Tip #3: Listen Carefully
One of the best things that you can do in any collection situation is to honestly listen to what a debtor is saying during your interactions. In many cases, there is a deal that can be worked out, but you first have to understand their situation to the best of your ability.
Tip #4: Be Flexible
While you are listening to a debtor talk about their situation, it can be extremely helpful to remain flexible in the options that you present to them. Finding ways to create win-win situations is the hallmark of any skilled debt collection effort.
Tip #5: Offer Holiday Incentives
There is nothing quite like a good incentive to get a debtor to take care of an outstanding balance, and the holidays give you the perfect opportunity to create those types of incentives whenever you like.
Sometimes, offering an incentive as simple as waiving some of the collection fees can be enough to collect full payment from an account you never expected to close, so always remember to offer those incentives.
Tip #6: Hire Help
Hiring a commercial debt collection agency is also a great way to help you close out some of those outstanding accounts before the end of the year. Partnering with an experienced agent will give you the resources you need to get those accounts settled quickly.
And while there will be an additional cost associated with hiring a collection agency, that cost will be more than offset by the amount of extra cash flow the agency can generate…all while you are spending your time focusing on getting ready for the new year.
Clearing out as many delinquent accounts as possible should be on every business’s year-end to-do list. And by following these simple tips, you can make sure that you are putting many of the most critical factors in your favor to get the job done right.