With banks issuing more and more credit, unsecured retail lending is at an all-time high. With debt levels continuing to grow, and payment patterns continuing to deteriorate, how will you collect outstanding debt without damaging your reputation and your brand?
For the savvy creditor, it’s important to know how to manage these risks upfront. It’s also very important to select a company that won’t damage your reputation. Done the wrong way, you could be headed for serious financial and brand implications.
The goal should always be to create a sustainable collections process.
This is why strategy is so important in collection. Do you want to collect and walk away, leaving no goodwill? Or collect, retain and rehabilitate? Do you want the debtor to come back for more credit?
When selecting a company to manage your financial and brand well-being, it’s important to look for a company that will partner with you from the beginning and advise on the correct management of giving credit and collecting debt. We’ve seen how important it is for the sales people to understand a product and its target audience. Targeting the right person reduces the risk of no payment down the line and getting a complete picture of the potential debtor helps you take more calculated risks. In addition, consultants should get as much personal information as possible up front, to help with possible future collections.
In brief, we firmly believe there should be a debt collections strategy put in place right at the beginning of the credit-granting process. This creates consistency, good policy and ensures proper training takes place at every level of an organisation—from the CEO down to the sales staff.
Mark’s advice for choosing a debt collection company:
“A promise made is a debt unpaid.”— Robert Service
Remember: a reputable company will always make good on their promises.
Choose a service provider with a firm understanding of the credit granting process, backed by years of expertise and a proven strategy that will enhance the effectiveness of the collection process - as well as your brand’s reputation.