What To Do When A Good Customer Incurs Debt?

What To Do When A Good Customer Incurs Debt?

When a good customer incurs a debt with your company, it can be extremely stressful for both your company and the debtor. We can understand that many clients may have been people that you have worked with for years and have been extremely reliable, which can make it difficult to request debt if something goes wrong.

Things To Check:

1. The Reason Why

It is important to remember before you start reaching out to a debt collection agency, is to reach out to your customer. There is a chance that it is something as simple as an expired card or a bill slipping their mind. Try to reach out to your customer and discuss their situation as they may not even be aware of the outstanding debt. This can put you in a positive position with your customer as it shows that you care about your customers and relationships. If this is not the case and your customer is avoiding paying, it might be time to reach out to a debt collection agency.

2. Billing Cycle

Check if there is a date every month or a day of the week that your client normally pays on. I.E. does your customer normally pay on a Tuesday and this bill was raised on a Friday? If that is the case then try to wait until the customer’s normal cycle has passed so that you can see if they pay at that time. Bill cycles are something to take into account, especially with customers who have, historically, been quite reliable.

Things to Do:

3. Follow Them Up

Check-in with the debtor, see if they are happy to pay and what you can do to help them get the money through to you. Discuss with them regarding the options and if they become defensive, this is the time to reach out to a debt collection agency. A debt collection agency can work with you to resolve the issue and to work out any issues as well as reach out to your debtor if things begin to escalate.

4. Offer a Payment Plan

A debt collection agency can work with you to offer a payment plan to your customer. Payment plans can be a way to maintain your relationship with your customer while still retrieving your outstanding debt. Working with an agency can also help you to confirm your agreements moving forward with any future payments.

Need a Debt Collection Agency? Reach Out to Dynamic Commercial Collections

Unfortunately, even the best customers can have overdue invoices. This is where Dynamic Commercial Collections can help. Our team at Dynamic Commercial Collections is here to help you retrieve your debt and maintain your customer relationships. With over a decade of experience in the debt collection industry, we work with you to resolve your debt collection. Contact us today to learn more or if you have any questions about your invoicing.

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