It’s almost rare to have a good experience in debt collection especially now that the year is coming to a close.
Pursuing debts owed by individuals and companies requires tact and professionalism. Having the right debt collection skills is the one way you can be sure of collecting payments owed.
Are these some of the challenges you are experiencing during debt collection…
Customers who are repeatedly failing to pay on time?
Customers who can pay but chose to delay on their payments?
Customers who constantly ask for extensions for the payment period?
Customers who completely default on their payments and you never get to hear from them again?
Whereas a customer is an important asset in your business, debts owed can a have a serious and damaging effect to your business and its sustainability.
In addition to that, you end up losing plenty of money to pay off outstanding debts.
And as we get closer to the end of this years, more customers avoid making payments because of the financial commitments that come with the festivities.
During the last quarter of the year, your clients have already started “switching off” so keeping up with the pressure of asking them to pay their debts can be very frustrating.
This ultimately affects your business as the new starts. A lot of people are looking to spend on vacations and trips at the expense of your business.
So what is the most effective way to make sure you collect all your debts in order to avoid being a victim?
Here are 4 debt collection skills that are guaranteed to be successful
- Emotional Intelligence
Debt collections at this time of year can be very frustrating especially when dealing with procrastinating debtors who avoid you and take you round in circles.
It’s very easy to get carried away by your emotions and let your anger get the best of you. But one thing you need to know as a debt collector is that a high level of emotional intelligence is necessary in order to succeed.
Quick Read >>> How to get a high level of emotional intelligence
Imagine a situation where you and a debtor are both charging insults at each other in a spate of anger.
I can assure you that it is you who will lose not the debtor. They will avoid you and any interactions with you or your company in future.
You need to understand the emotional state of the client and manage your own emotions in order to exercise the right social skills.
- Communication and Negotiation skills
Communication skills is paired with negotiation skills because in collection you don’t always have to negotiate for full payments.
Rather, you use your communication skills to negotiate for full payment by asking the debtor to choose a viable payment plan.
Always bear in mind that a debtor won’t agree to make the full payment just yet. So giving them options and setting reasonable timelines affirms the seriousness of the process.
- Excellent writing skills
As debt collector, you need to document accounts in a manner the debtor can understand. You need to be clear and concise in your writing in order to avoid miscommunication.
Read what you write and see how well you can understand and comprehend it. If it doesn’t make sense to you, it won’t make sense to the other person.
This also applies when you do not reach an agreement with the debtor, ensure you write down, all parties understand and agree to the terms and sign.
- Time management skills
Debt collection is about productions of results in terms of payments collected. Time management involves scheduling and following up on payment arrangements. You work on set deadlines that have to be met in order to establish success of accounts.
How successful you collect payments is highly dependent on how well you can adhere to schedules.
Start collecting all your debts…
By learning these skills you will be able to aid a speedy debt collection procedure, increase the financial health of your company, efficiently deal with delinquent customers and use the right approaches to make debtors pay and ultimately reduce unnecessary follow ups
Debtors can cost you thousands to millions of shillings and are a threat to the very sustainability of your business.
So don’t wait until it’s too late.
Learn more about the guaranteed debt collection skills by clicking this link.