This Is How the Specialists Do It

 The collection process is a slight deviation from the regular practice adopted by organizations yet a compulsory business process undertaken by almost each organization off late. Any client or customer who owes an organization any outstanding payment makes an organization legally entitled to reach out to them for payment. There are certain debts, which become disputed and the best way to deal with them is to decide onto a realistic payment mode, like choosing installments as the payment mode. Despite that, there are some situations where things may go off-track and the debtor still refuses to pay, here is where organizations think of taking some radical actions.

Quite frequently organizations contract out service providers to act as their facilitators and carry out this process for them. These service providers are contracted out the process, and a Service Level Agreement (SLA) is exchanged to ensure adherence. This agreement fundamentally defines the limit which is to be followed by them while performing the collection process on the organization's behalf.

Assured benefits out of a collection process can be achieved, if organizations as a first step understand the background of the customer or the party that is in default. Such understanding can be developed through the customer database that organizations maintain as a record about the clients. With such an understanding, organizations can then act in a professional manner with them to get simple and quick collection results and formulate strategies as to which type of collection method to undertake that guarantees positive results.

First-Time Default

These are those clients who have a respectable foundation in regard to their history of making payments. At this point, of managing such clients, the collection process is carried out at a modest pace followed by gentle yet specific reminders. They are counted in the good books of the organization. So the last thing any organization would want is to lose any such clients and thus a collection method is applied, which can retain them with simple to-do strategies for collection.

Lethargic Customers

The clients so categorized, generally have a late-payment history when it comes to paying their scheduled installments. However, they are not the kind defaulters of whom an organization should be wary of. This classification reflects their nature type, I.e. being lazy is their tendency, so organization opts for gathering methods. These include regular updates to encourage them to make payment of pending installment at the earliest opportunity and to close the collection process fast.

Bad debt

This category comprises of bad defaulters. These are those clients who have a history of defaults, and a heap of installments is left with them. Organizations frequently follow up with delicate updates; however, depending upon the SLA, they can try for action-oriented strategy by either their own particular collection team or third party collector.