If you are running a business, outstanding debts from customers is inevitable. The process of recovering money from customers that owe money to your company is called debt collection. It is the biggest challenge in front of most businesses in the country, especially when they have to collect debts and maintain relationships with customers simultaneously.
When does debt collection become crucial?
It doesn’t matter whether you are selling products or services to customers. What matters is, be it any business that you are into, customers should clear your invoices on time without any delays. Sadly, this does not happen so easily in the business world.
Uncleared invoices can significantly lower the inventory turnover and reduce the cash flow of an organization. It can also defame your company’s name and reputation in the market, and negatively impact the credit rating.
For better and faster debt collection results, it is necessary to take action as early as possible after the payment due date is over.
Most invoices have a period of 30-45 days for the customer to make the payment. If the invoice remains unpaid even after 60 days from the due date, debt collection becomes crucial.
You can directly approach the customer for clearing the dues or hire a renowned debt collection company in India.
Here a B2B debt recovery company goes about the process of debt collection.
Share details with the debt collection company
Once you hire the best invoice collections company in India for debt collections, it is important to share all the details of the overdue invoices of customers, and for how long they have been overdue.
Connecting with customers
- Be it a single case or multiple cases of debts, a professional debt collection company in India starts working on the case immediately.
- The B2B debt recovery company makes structured phone calls, sends registered letters, and emails to the customer requesting for payments.
Making an offer to the customer
- In many cases, the customer is unable to make the payment in full.
- After your approval, the debt collection company in India will go ahead to come up with a payment plan that suits both you and the customer.
Evaluation of debt collection
After the debtor has been contacted several times, the B2B debt recovery company performs an evaluation of the entire collection process, and suggests the best way to move forward. This may be:
- Taking legal action against the customer
- Going for a payment plan
- Insolvency monitoring
Hire a debt collection company in India like Kollecto and put an end to your debt collection problems.