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Debt Collection – How to Preserve Customer Relationships

Customer relationships are an important aspect of modern business, so when a client owes your business money, finding a way of recovering the debt without alienating the client is vital.  This is why finding a debt collection agency that will deal with the problem and still maintain customer goodwill is imperative, especially with so much competition in today’s market. 

Choosing to use a professional debt collection agency which offers personalised debt recovery options which will be helpful to clients who are genuinely having problems paying.  Flexibility in payments can be introduced through net banking or their debit or credit cards.   In some instances, merely increasing the debt recovery time will enable late paying clients to be in a better position to pay when they have funds available.  Alternatively, waiving the interest rates for a particular period could help.  For instance, if a client owes your company £1,000 and the payment date is one month from receipt of invoice, you may decide to increase that payment period to two months, specifying that no interest will be charged in the second month.

Look for a collection agency that will consult with you on the strategies you wish to use in the debt recovery process.  There is a marked difference between personal and commercial debt collection methods and a debt collection agency should not deal aggressively with a business owner who owes your company money.  The goodwill of both your business and your client’s business will be at stake, so a more moderate approach is likely to be beneficial to all parties and should not damage a long-term business relationship.

If you’ve been supplying clients in different parts of the world and are faced with a late-paying client, you may be thinking that recovering monies owed from overseas customers could be problematic.  However, there are international debt collection agencies here in the UK that specialise in dealing with overseas debtors.  They will have the knowledge and experience necessary to recover money owed to your business by customers from all four corners of the world.  They are familiar with the processes used by different countries and know how to approach the problem in way that is much more likely to result in success. 

If you’re worried that engaging the services of a professional debt collection agency will be too expensive to represent a cost-effective solution to the problem, it may put your mind at rest to know that some agencies will operate on a contingency basis.  This means that they operate a no-win, no-fee service, meaning that you won’t be risking more money by chasing the payment owed to you.  If the money is recovered, you’ll pay the agency, but in cases where payment is still not secured, you won’t have to pay a fee for the service.