Why debt collection needs to be more than a threat
Chasing bad debts isn’t a position that anyone wants to be in. It comes to a time when the next steps need to happen when payment is not forthcoming. It’s at that stage where many people will start thinking about the next steps and considering debt collection.
Making the threat
At this stage, a vague threat of ‘further action’ is often sent and ignored. Without anything specific, this could lead to the debtor not taking it seriously. A lot of companies try to make an empty threat without ever having the intention of following up on it.
If a debtor starts to receive a few of these letters or calls saying the same thing, then they will soon realize that the ‘further action’ is never going to happen. A lot of the time bad debtors need a lot more persuasion.
Affecting your reputation
There is little doubt that different companies get different reputations for chasing debts. If you’re worried about being a pushover then not actively chasing your debts is going to be the wrong way to go about your business.
There is also insolvency to consider. If you leave your bad debts for too long then the likelihood of bankruptcy increases. This could leave you with no payments and a lot worse off than if you turned to doorstop collectors a lot earlier.
The only real way to persuade people to pay it to make sure that they know the consequences of their actions. Using a reputable debt collection company will not only get results from the debts that they’ve targeted but it will also have a positive effect on your reputation and your ability to get debts paid quickly in the future.
Here at First Capitol, we are experts in making that a reality. We’ll be able to deliver on your needs and make sure that you are getting the highest possible return for debts which might otherwise pay back very little. Contact us today to make sure that you will be able to increase your cash flow, prevent bad debts and have a more profitable business.