3 Unique Debt Collection Challenges
When your client or customer owes you money, challenges may arise. Perhaps you have a number of clients or customers ...
When your client or customer owes you money, challenges may arise. Perhaps you have a number of clients or customers who are delinquent in payment or maybe some of them have gone out of business. How do you collect? Do you want to continue working with them if they do pay? If so, it’s important to maintain good customer relations with them, but that can be a stumbling block in the debt collection process. What can you do to make this part of running a business easier?
Hire a Debt Collection Service
There often comes a time when the debt owed to you is too big to handle on your own. The above situation is just one of the reasons to hire a good debt collection service and let the experts handle this component of your business. There is also the legal factor, and this can be tricky if you aren’t sure of all the compliance rules and intricacies.
Let the Agency Take Care of the Challenges
Let’s take a look at some of these challenges businesses face when collecting a past due account and how a debt collection service can help:
- Managing and tracking debts for a large portfolio of clients:
The intricacies and details of debt collection are key factors in getting your money. A collection service can keep detailed records and document each and every interaction with clients. When your organization is dealing with a large number of debtors, this can get tricky. You want to maintain meticulous records, and when you are charged with managing a large client portfolio, this can be difficult. A professional debt collection partner can handle this process with services that include:
- First or Third Party Collections
- Portfolio Management
- Proof of Claims Service
- And more
- Handling accounts that are no longer in business or have filed for bankruptcy:
What happens when someone who owes you money has gone out of business or filed for bankruptcy? When a company or person files for bankruptcy, debt collection is handled differently and this is where a professional debt collection partner can help. TSI has bankruptcy monitoring, identification, scrub services, account coding, and file bankruptcy proof-of-claims, to help take the burden off your staff by integrating these services into your regular collection workflow.
- Maintaining positive customer relationships:
If all works out, you may want to continue business with these clients. A debt collection agency can get the bills paid while continuing to maintain a positive relationship. Because companies like TSI have support for the consumer as well, everything can be done in a compassionate and diplomatic manner to get the best results for all involved.
When you feel overwhelmed with the idea of collecting debt for your business, contact us at TSI. We are here to help you and get the money owed to you. TSI provides solutions for accounts receivable management and debt collection services for businesses of all sizes. Get started today.