What to do when collecting from delinquent customers?
Posted: Mon Jan 27, 2025 8:39 am
Collecting debts from delinquent customers is a delicate matter, especially if you are the one who will be making the contact. Therefore, it is essential to have a competent and sensitive team to provide the best service and, in addition, to understand that, often, the debt is linked to a much bigger problem.
That said, it is best to plan how to proceed and iran number dataset that everything goes as expected for both parties. Check out this article for some tips on what you should and shouldn't do to ensure positive results in contact.
When to collect from defaulters?
One of the most frequently asked questions on this topic is: “When is a customer considered in default?” This usually happens whenever a person fails to pay for a product or service within the established deadline.
Each company can define the time of contact as it sees fit, but it is recommended that you wait up to five business days after the due date. This way, you do not run the risk of charging a consumer who has already paid the bill but has not yet received the bank's clearing.
Learn how to collect from delinquent customers
Collecting debts from delinquent customers is not simply about contacting them and offering the proposal that best suits the company's needs. The idea is to understand the customer's situation and see how it is possible to balance the opportunities.
Start the conversation by really trying to understand the reasons why the payment was not made. Find out the main problems and pain points of the defaulter. Show that you care and see how he or she could pay the debt.
Decide together with the debtor and avoid creating conflicts of interest, as this could even cause you to lose the customer to the competition.
See what other procedures for collecting from delinquent customers you should put into action:
Have more than one proposal and negotiation limits in mind
Even though it is necessary to be flexible in what will be offered to the client who has not settled their obligations with the company, it is necessary to already have more than one proposal to suggest before making contact, as well as the maximum negotiation limits.
Suppose you are on the phone with a customer and, with each question they ask, you have to cut the call and go to your manager. That would be unpleasant, right? Plus, it gives the impression that you have no control over the negotiation.
Therefore, it is crucial to have some proposals and installment limits, discounts, values, etc. stipulated. This ensures that you will have more fluid contact, with more possibilities of obtaining a good result in collecting from defaulters.
Also read some Tips for Creating the Perfect Collection Script that will help you in this conversation with the defaulter!
Know the customer's history
When contacting a defaulter directly, it is important to have access to their history with your company. This is because an individual who is a recurring debtor cannot be treated as an occasional debtor. It is necessary to take this into account.
A customer who has never failed to pay any of their bills for your products or services needs, at the very least, for you to give them space for an explanation and, of course, deserves more flexibility when making agreements.
However, when it comes to a defaulter who frequently fails to pay off his debts, the “scope” of possibilities in the negotiation must be reduced, especially in terms of timeframe.
That said, it is best to plan how to proceed and iran number dataset that everything goes as expected for both parties. Check out this article for some tips on what you should and shouldn't do to ensure positive results in contact.
When to collect from defaulters?
One of the most frequently asked questions on this topic is: “When is a customer considered in default?” This usually happens whenever a person fails to pay for a product or service within the established deadline.
Each company can define the time of contact as it sees fit, but it is recommended that you wait up to five business days after the due date. This way, you do not run the risk of charging a consumer who has already paid the bill but has not yet received the bank's clearing.
Learn how to collect from delinquent customers
Collecting debts from delinquent customers is not simply about contacting them and offering the proposal that best suits the company's needs. The idea is to understand the customer's situation and see how it is possible to balance the opportunities.
Start the conversation by really trying to understand the reasons why the payment was not made. Find out the main problems and pain points of the defaulter. Show that you care and see how he or she could pay the debt.
Decide together with the debtor and avoid creating conflicts of interest, as this could even cause you to lose the customer to the competition.
See what other procedures for collecting from delinquent customers you should put into action:
Have more than one proposal and negotiation limits in mind
Even though it is necessary to be flexible in what will be offered to the client who has not settled their obligations with the company, it is necessary to already have more than one proposal to suggest before making contact, as well as the maximum negotiation limits.
Suppose you are on the phone with a customer and, with each question they ask, you have to cut the call and go to your manager. That would be unpleasant, right? Plus, it gives the impression that you have no control over the negotiation.
Therefore, it is crucial to have some proposals and installment limits, discounts, values, etc. stipulated. This ensures that you will have more fluid contact, with more possibilities of obtaining a good result in collecting from defaulters.
Also read some Tips for Creating the Perfect Collection Script that will help you in this conversation with the defaulter!
Know the customer's history
When contacting a defaulter directly, it is important to have access to their history with your company. This is because an individual who is a recurring debtor cannot be treated as an occasional debtor. It is necessary to take this into account.
A customer who has never failed to pay any of their bills for your products or services needs, at the very least, for you to give them space for an explanation and, of course, deserves more flexibility when making agreements.
However, when it comes to a defaulter who frequently fails to pay off his debts, the “scope” of possibilities in the negotiation must be reduced, especially in terms of timeframe.