Successful Debt Collection Techniques

Updated November 7th 2023

Debt collection is a capability that every business needs to develop. If you're running a small business and don't have the time or money to hire a professional debt collection agency, then you will need to start learning how to collect your debts yourself. If you're not sure what steps to take, keep reading this article for some helpful advice.

Collecting debt is a delicate process, and it can also be contentious.

Debt collection can oftentimes be a sensitive affair. The debtor may feel that they are being harassed or bullied into paying the money back when they don't have the means to do so. Collectors should always keep this in mind when speaking with debtors; even if you aren't personally feeling sympathetic toward them, your tone of voice will speak volumes about how you feel about them as human beings.

It's important for collectors to know when enough is enough--that point where the collector has done all he or she can do without risking his/her job or reputation as an effective collector. While every situation is different, there are some general guidelines for when this point has been reached.

If there's no response from the debtor after repeated attempts at contact (phone calls, emails), then stop calling or emailing until further notice and report back on your progress later on down the line; maybe try again later on (within reason) after giving some time for things like stress levels and other circumstances surrounding both parties' lives have changed slightly since last time around.

Always get everything in writing.

When it comes to debt collection, always get everything in writing. A signed agreement is your best assurance that you will be able to collect on your debts, so make sure that you have one before you start collecting any money from clients.

This includes agreements with the person or company who owes you the money, as well as any other details of how much they owe and when they are expected to pay it back. The more information you have on file when someone defaults on their obligation(s), the easier it will be for you to collect those funds later on down the line--and even if someone doesn't default right away (or ever), having documentation makes life much easier when making future business decisions.

Use the right tone.

While you may be tempted to use a threatening tone, this is not the best way to go about things. Threatening or bullying your debtor can backfire, as it will only serve to make them feel more resentful towards you and less likely to pay up. Instead of threatening them, try being polite but firm instead--this will show that you are serious about getting what is owed from them without making them feel intimidated by your words or actions.

Be polite...

A debt collector should always be polite and respectful. In fact, it's important to remember that you are dealing with a business which is likely having a difficult time financially and may already feel embarrassed or ashamed about their situation. It's also important not to take your frustrations out on them; if you're feeling frustrated or angry because of the situation, take some time away from the call before returning so that you don't say something hurtful or insulting.

You should never use profanity when speaking with someone who owes money - not only does this make your company look unprofessional but it could also cause harm if the debtor decides to file suit against them later on (for example if he/she feels like he/she was threatened). Also avoid making threats or bullying tactics such as "I'll have my lawyer contact him" unless there is actually an attorney involved in this matter - otherwise this will just make matters worse! If possible try avoiding insults altogether - they rarely help resolve anything and usually just end up making things worse by causing anger between both parties involved (you included).

Don't threaten or bully.

• Don't threaten or bully.
• Don't threaten to harm the debtor.
• Don't threaten to harm the debtor's family.
• Don't threaten to harm the debtor's property.
• Don't threaten to harm the debtor's reputation (e.g., by telling everyone that they owe you money).

...but be firm.

• Be firm, but not aggressive.
• Be assertive, but not pushy.
• Be polite but clear in your communication with debtors and their families or employers if they are involved in the case (this is especially important when dealing with elderly relatives).
• Remain persistent when contacting debtors by phone or letter; don't give up as soon as you hear an excuse or receive an angry response from them! You may need to contact them several times before they agree to pay what they owe you--and even then, be prepared for further delays before receiving payment.

Get your facts straight and keep records updated.

You should always keep accurate records of all communication with the debtor. This is important for two reasons: first, you will want to be able to prove that you made a certain effort in trying to collect on your debt; second, if something goes wrong later on in the case (such as a judgment being vacated), it may be necessary for an attorney or court clerk to review your file and determine whether there was any misconduct by either party involved in collection efforts.

Keeping accurate records helps ensure that everyone involved understands what happened at each step along the way until final resolution of the case.

Communicate with all parties involved quickly and clearly, and make sure you're handling the situation professionally at all times

• Always communicate with all parties involved.
• Be clear, concise and professional at all times.
• Ensure that you are handling the situation professionally at all times.

Hire a collection attorney

Hiring a collection attorney is one of the most effective ways to get your money back. You should only hire an attorney who is experienced in debt collection. Make sure they have experience with the type of debt you're trying to collect, as well as knowledge of state laws and regulations pertaining to that particular type of debt.

Conclusion

We hope this article has given you some insight into the world of debt collection, and how to approach it professionally. We also want to remind you that there are many other options available besides hiring a collection attorney. Register at Retrievables to find a collections attorney and get your invoices paid!

Updated November 7th 2023
Author: Brendan Gilbert