1. Not having a credit policy
2. Not being flexible with your credit terms
3. Failing to collect enough up-to-date information about the debtor
If you don’t keep accurate client records up-to-date, it will be very difficult for a debt recovery company to recover the debt for you.
In the first instance, if you don’t have the correct business trading title or a current address for the debtor, any debt related correspondence could be returned to you and doorstep/debt collection will be impossible. I have lost count the number of times we have been instructed to collect a debt and the client has provided us with copies of the invoice/s due and the trading name doesn’t even exist! Our Company Vetting checks can ascertain the correct trading name of the business and who the directors are.
4. Ignoring how much debt recovery will cost your business
5. Not following up invoices
6. Failing to use effective communication
7. Failing to ask for professional help
Always bear in mind that some debtors can be especially stubborn and you may struggle to persuade them to pay. Often, the use of a professional debt recovery agency is far more effective in recouping your money than struggling for weeks or months on your own.
Keep your company’s cash flow coming by avoiding these 7 horrible debt recovery mistakes. If you’re struggling to persuade a client to pay up, consult the professionals: www.firstcapitol.co.uk