When it comes to the world of debt and recovery, most businesses are concerned only with how to get the money they are owed. While that’s an understandable task to be focused on, many businesses don’t realize that they could have more success with debt collection if they took the time to figure out why their customers weren’t paying. Communication between the customer and business is key and can make a real difference when it comes to collecting money.
When a customer is first late on a payment, the business should call them directly to try and discover a reason for the delay. Communication should be friendly, concerned, and non-intimidating. If the customer can’t offer a firm repayment date, the business representative should always ask why.
Sometimes, customers are legitimately struggling financially and just can’t pay their bills timely. In this situation a business needs to be prepared to offer alternative payment solutions.
Some people may feel that the products or services they were billed for were too highly priced. This can often happen when a clear pricing agreement wasn’t made ahead of time. They may also be unhappy with the product or service they received. Furthermore, customers may have never received their invoices due to an address error or may have simply forgotten when their payments were due.
The bottom line is there are many reasons that people don’t “pay up,” however, good business practices include negotiation to an amicable resolution.