As part of our services at E.H Taylors, we guide our clients when it comes to debt collection. It’s not an easy skill, but you have every right to be paid, and with this in mind, we have devised 5 Miracle Steps To Successful Debt Collection. Over the coming months, we look forward to sharing these steps with you and a host of other vital skills to help you navigate this occasionally rocky road.
But first, to ease you in gently, we thought we’d start with a basic introduction to successful debt collection and a general understanding of its importance.
Successful debt collection requires a system
Before you do anything, the best step you can make towards successful debt collection is to put a rigorous system in place. It should be one that is designed to work for your business and should not be overridden, no matter what the circumstances.
The key to success is discipline
Once you have your debt collection system in place, the only way to ensure it operates reliably is to enforce discipline on yourself. You should also consistently discipline your customers to guarantee they follow your system.
You have every right to be paid on your terms. Allow your clients too much flexibility, and they’ll take advantage of your good nature, stretching out their credit with you. This will ultimately risk harming your businesses success.
When does the debt collection process begin?
There is a common misconception amongst business owners that the debt collection process only begins when a client invoice becomes due for payment. This, however, is not the case!
Your businesses debt collection process actually begins before your start working with a new client. It begins with your system.
The perfect combination for successful debt collection
Although discipline is an overriding factor when it comes to successful debt collection, there is, in fact, no one magic ingredient that will deliver you success. Instead, it’s quite the reverse, in that there are a whole host of more minor things that need to be checked off beforehand. Once combined, these ingredients together will result in you collecting what is owed to you 95% of the time.
Everything you need to know
In our upcoming series of blogs, we will be focussing on each of the . . .
5 Miracle Steps To Successful Debt Collection:
1. Getting Your House In Order
2. Setting The Tone
3. Invoicing Like Lightening
4. Never Let Them Off The Hook
5. Driving The Process
Stay tuned as we walk you through this process and outline everything you need to know to put a proper debt collection process in place.
An important note to consider when it comes to debt collection:
Although our 5 miracle steps will apply to most businesses, they may not apply to all. In our upcoming guides, you can take the parts that are most relevant to you. Debt collection is an ongoing process for every business. It should therefore be operated consistently, with discipline and reliability.