Someone owes you money but never pays back. Eh! Not a good feeling, right? Now imagine your business going through this countless times. It’s a big problem for small business owners, companies, or any service providers. To be honest, unpaid bills are any business’s nightmare.
Been in a similar situation and wondering – what’s the best debt collection strategy without being rude?
That’s exactly what James Assali, a successful entrepreneur from Orange County, California, believes in tackling. Assali believes that being kind and professional is the most effective way to collect debt, rather than being cold or harsh.
Why is Ethical Debt Collection Important?
Many people don’t skip their dues on purpose. Life comes with all sorts of tragedies, and that’s ok! Some may not be able to clear the debts due to a health emergency or they might have lost their job. As humans, it’s our responsibility to stay humble and respectful yet achieve our professional agenda. This is exactly where ethical debt collection comes in. It’s not just a fair, helpful, and respectful way to ask people or businesses to pay what they owe.
Assali feels that it’s not like people don’t want to pay. In most cases, they just want somebody who listens to them and gives them a fair chance.
Real fact – In America, around 35% of the adult population has at least one debt that has been turned over to a commercial debt recovery agency.
Clear Communication is The Key
James Assali believes confusion to be the greatest enemy when it comes to debt clearance. If the customers are not aware of what is expected from them, they might end up delaying or ignoring the payment.
If you want your payments to be cleared on time, put some extra effort at the beginning only, and make every aspect super clear. Here are some tips to ensure a clear communication is established.
- Mention due dates clearly.
- Offer various payment options such as ACH, PayPal, card, etc.
- Take the help of simple invoicing tools to send out easy-to-read invoices.
Team Up with a Professional Commercial Debt Recovery Agency
Commercial debt recovery agencies come to the rescue when things go long past due dates, say 60-90 days. Assali suggests taking help from agencies that act as a solution provider and not a threat giver. This helps both sides, he believes.
DCI is a trusted name by entrepreneurs like Assali, which has been helping businesses recover for 50 years, without burning any bridges. Features that set DCI apart from the rest are that they treat people respectfully, focus on counseling, and offer flexible payment plans. They choose humility over harassment.
Be Consistent
Bombarding every day with 10 calls makes the person disturbed rather than creating any helpful impact. Assali notes that one needs to be present rather than creating pressure. He believes a friendly schedule keeps things professional.
First, start with sending friendly reminder emails. After a week has over, give a reminder on a call or text. When things go beyond half a month, consider offering a payment plan. If things don’t work out even then, take help from a professional recovery agency.
Offer Flexible Payment Options
When a good amount of money is due, it becomes difficult for people to pay. In those scenarios, opting for payment plans remains helpful. Suppose the due amount is $5000. It might be difficult to pay the whole amount at a single go, but if you break it down to $250 per month, they could probably handle it.
Professional agencies like DCI offer payment plans to people that make it easier for them to pay. On the other hand, it also increases recovery time.
Take the Help of Technology
Technology has a huge role to play in every segment of life. Assali stresses that saying technology doesn’t just save time, it keeps your business looking sharp and organized.
Multiple tools help in building efficient debt collection strategies. To manage follow-up, there are Trello or Asana. Stripe and Square can be used to accept online payments. There are also tools like Zoho CRM to track calls, emails, and notes.
Follow The Rules
To do business in the US, it’s absolutely important to obey the rules, otherwise, you can find yourself in legal trouble. The FDCPA and TCPA are two laws that protect individuals from harassment, including continuous calls or emails. Apart from these, there are also state laws in every state.
Tackling all these rules yet recovering the debts can be tricky. This is where a commercial debt recovery agency like DCI helps. They know the rules and also have their ways of getting the money back. All you need to do is sit back and relax.
Final Thoughts
Businesses today believe in the smart way of collecting debts, which is to build trust and not fear. James Assali believes that when businesses lead with integrity, people remember and don’t hesitate to come back.
Making your invoices clear, following up while remaining respectful, and offering flexible payment plans are some of the important steps that build the necessary trust in the brand, helping people clear their debts. To remain a respectful and trusted brand of people’s choice in the US, it’s necessary to maintain professionalism and follow the rules.
Want help with recovery without being rude? Check out DCI’s services to learn how they bring result-driven, ethical debt collection strategies that work.
