Busting The Biggest Debt Collection Myth
Because it's such an ugly job it's tempting to justify putting off debt collection on the excuse that chasing overdue accounts chases away customers.
Because it's such an ugly job it's tempting to justify putting off debt collection on the excuse that chasing overdue accounts chases away customers.
However, if we're brutally honest what really holds us back is the fact that hounding people for money is down right nauseating. And because its human nature to avoid the things we hate doing well guess what... we avoid chasing bad debtors!
Now as seductive as avoiding unpleasantness is, the cold hard truth reveals that this reluctance to pursue overdue accounts is devastating.
By definition, a customer gives you money in exchange for your goods and services.
Now a good customer values your business. A good customer pays their bills on time. And a good customer will openly communicate with you should they find them selves in a financial tight spot.
Now while there's no shame for being financially tight in this economic climate there's no excuse for not taking responsibility for one's circumstances. As such, any half-decent human being will actively contact you to a) make you aware of their financial situation and b) to work out a mutually agreeable plan to repay the debt.
However, anyone who dodges your phone calls and letters; anyone who tells blatant lies to get you off their case; and anyone who makes up false disputes... they're NOT is not a good customer!
So going back yo our definition of a customer, anyone who takes your goods and services but then refuses to pay you can not be a customer. They are instead bad debtors who by definition have no intention of paying you. As such these individuals need to be dealt with swiftly and ruthlessly if hope to have any chance of seeing your money again.
Bottom Line: dealing with bad debtors firmly will not chase away good customers nor is it bad for business. In fact the opposite is true.
Because it's such an ugly job it's tempting to justify putting off debt collection on the excuse that chasing overdue accounts chases away customers.
However, if we're brutally honest what really holds us back is the fact that hounding people for money is down right nauseating. And because its human nature to avoid the things we hate doing well guess what... we avoid chasing bad debtors!
Now as seductive as avoiding unpleasantness is, the cold hard truth reveals that this reluctance to pursue overdue accounts is devastating.
By definition, a customer gives you money in exchange for your goods and services.
Now a good customer values your business. A good customer pays their bills on time. And a good customer will openly communicate with you should they find them selves in a financial tight spot.
Now while there's no shame for being financially tight in this economic climate there's no excuse for not taking responsibility for one's circumstances. As such, any half-decent human being will actively contact you to a) make you aware of their financial situation and b) to work out a mutually agreeable plan to repay the debt.
However, anyone who dodges your phone calls and letters; anyone who tells blatant lies to get you off their case; and anyone who makes up false disputes... they're NOT is not a good customer!
So going back yo our definition of a customer, anyone who takes your goods and services but then refuses to pay you can not be a customer. They are instead bad debtors who by definition have no intention of paying you. As such these individuals need to be dealt with swiftly and ruthlessly if hope to have any chance of seeing your money again.
Bottom Line: dealing with bad debtors firmly will not chase away good customers nor is it bad for business. In fact the opposite is true.
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To help you recover more of your overdue accounts faster and cheaper The Debt Doctor's Debt Recovery website has a number of powerful free tools and resources. For instance, to download free Debt Recovery letterssimply click either link above.