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1. Common Problems Faced by Companies in Debt Collection

The sale of any business is said to be successfully completed only when the customer pays the money for the product or services offered by the business. A common problem faced by businesses, small or large, is that customers fail to make the payment after sending the invoice. If too many customers fail to pay on-time, debt collection can become quite boring, tedious, and extremely time-consuming. This is the reason why many organizations hire a professional debt collection company in India.

Here are the common problems faced by companies in debt collection.

Problem # 1: Customers provide several excuses

When someone from your organization calls a customer for making the payment of a particular invoice, the debtor makes several types of excuses. Some of them are:

  • I will do it next week.
  • Business is not running properly. I need more time.
  • I’m out of town. Will do it after coming back.
  • Someone in the family has been hospitalized.
  • I’m facing a cash crunch.
  • Tax season is going on.

You may fall for these excuses, but an expert B2B debt recovery company won’t. The best invoice collections company in India like Kollecto has answered all sorts of excuses made by the customers when it comes to debt collections.

Problem # 2: Fear of losing a customer

Most businesses fear losing a customer if they make calls regarding the payment.

Many don’t want a negative relationship with a late paying customer, as they think that they will get good business from them in the future.

There is also a fear of the customers spreading negative words about a business or brand in their community.

Problem # 3: Lack of trained staff

  • It is important that someone keeps a check on the overdue accounts of customers.
  • Calling customers again and again and insisting on making the payment is not an easy task.
  • For this purpose, proper trained staff is required.
  • Most companies don’t have trained staff, or they fail to provide proper training to them.
  • In most cases, even the customers become immune to such calls from the business staff.

Some other problems faced by companies in debt collection include:

  • Language (communication) barrier
  • Rules and regulations by the Government
  • Customer is bankrupt
  • Customer is not traceable
  • Contacting the wrong person for payments
  • No formal written contracts

If your business is facing any problem in debt collection, it is best advised to hire an experienced and professional company in India like Kollecto to streamline your debt collections.

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