Quick debt collection – how to identify excuses and then get your customers to pay!

Each month we see Debtors coming up with different excuses to delay payment.  But over time we have learnt that there is an easier way to achieve quick debt collection when it comes to long-term late payers.

Below is a list of excuses and potential methods to implement in your business which should result in quick debt collection and improved cashflow for you and your business:

• The Debtor is always busy or out of the office – this is a common tactic for delaying payments as the onus is on you to spend more time chasing them, and the Debtor knows you likely to put them to the bottom of the pile if they cannot be spoken to.  A method to work around this is to speak to a Senior Manager or fellow Director, perhaps another employee associated with the work you did for them and advise them of the situation and the urgent nature of the position.  Request an immediate call back, take their email and then follow-up with that person in 2 days by email.  A written correspondence chaser, such as this, makes it more difficult to ignore and is a formal request, as oppose to leaving a message which may never reach the right person at all.
• The Debtor never received your invoice – another excuse, but can sometimes be genuine, and the best way to resolve this to enable quick debt collection is to have the Invoice ready to be emailed whilst you are on the phone.  Whenever you make a call you should always have a digital PDF copy in front of you, then just say to the Debtor, “I will just email you it now and then let me know you have got it” once they confirm on the phone, request immediate payment by asking for the next available payment run.  If that is not within 7 days, request an urgent one-off BACS transfer.
• The cheque is in the post – this excuse is as old as quick debt collection itself and you should be ready and armed for this one!  Again strict procedures are required to ensure a fast resolution to this problem.  Ask them: date it was sent, exact amount sent, cheque number and whether it was sent 1^st or 2^nd class, then if it was more than 7 days ago request they cancel the cheque and either pay by BACS, or send 1^st class today.  The good thing is here, they have admitted the Debt and an excuse such as Rate Query or Dispute cannot now be used to delay the payment further.

So these are just a few of the stories we here in our every day mission to ensure quick debt collection for our clients, and we hope this information is helpful to you and your business if (or should we say when!) you come across slow-payers.

If you need help in your business to improve cashflow and implement some quick debt collection strategies, please give us a call to see how we can help you out, please email enquiries@tauruscollections.com or call 0843 309 1633