Always be in the forefront of your competitors when it comes to pursuing debts. If later legal action is warranted, speed will also ensure you are able to track down the debtor. Apart from increasing the odds of collecting debt by acting rapidly and relentlessly, another advantage of this approach is that you will gain an aggressive reputation for recovering debt in your industry, where customers are likely to pay you quickly first before your competitors. Develop and strictly enforce a systematic collection procedure and ensure that everyone, including your customers are aware of it. The rest of this section will provide you with a few ideas on developing your debt collection techniques.
Personal contact is often an effective means of collecting debts.
Debtors can be retained as valuable customers and put onto a proper payment system to help them pay their debt in a timely fashion. Face to face encounters are perhaps the most productive. Face to face encounters are not appropriate in all situations. If a meeting cannot be arranged under any pretext or because of insufficient time or the smallness of the debt, then the next best approach is to telephone the debtor. A letter of demand is a more formal approach compared to personal contact.