It’s All About that Pace: Efficient Debt Collection Strategy

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In debt collection, as with most things in life, timing is everything.

The longer it takes for your team to act on a case or the longer you give a consumer to pay, the less likely it becomes that you will collect on that debt.

It’s important for you to collect as much on each case as possible for several reasons. Obviously you need to collect to satisfy your clients and show them that your team is skilled and competent, but many clients will send small batches of collections cases in order to assess a firm’s success before sending them more (and often bigger) cases. Your collection fees also pay your employees and keep your business up and running.

Here are a few ways to ensure that your cases are being processed, acted upon and collected on in a timely manner:

  1. Upload and process new cases ASAP. When you receive a new case from a client, upload the necessary information into your database and begin processing the case as soon as possible. Once the information is accessible, other members of your team will be able to do their part, such as making contact with the consumer via a demand letter or filing documents with the court.
  1. Consistently follow up with clients and debtors. This may require hiring additional personnel, but making legal, consistent contact with consumers is the best way to secure payment. Going long periods without making contact with a consumer will reduce the likelihood of receiving payment. Also, keeping your clients updated on their cases is a great way to build relationships and secure more work from them.
  1. Determine if there is intent to pay. If a consumer tells you up front they have no intention of paying their debt or you sense it during your conversations, take advantage of that knowledge and move to legal action in the most expeditious manner allowed.

If you are dealing with a bad debt, or a debt that cannot be recovered, don’t waste time or resources. Focusing on active, collectible cases will provide the most benefit to you and your client.

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