Recovering delinquent debt drains resources, and the recovery process often fails. With the time, money and manpower spent on debt collection, many businesses find it more appealing to hand off delinquent accounts to a debt collection agency rather than face the negative impact on the company.

However, any company can increase their return on investment with a little effort and skill. Boosting in-house debt collection is an art, but with driven people and knowledge of tricks of the trade, any business can see greater results.

One of the most important things to do is to start the debt collection process early. Rather than waiting until the debt is delinquent, call the debtor as a reminder to pay the bill on time. This can significantly decrease the number of delinquent debt portfolios the business must deal with.

Also, waiting until the debt is old is a mistake. The sooner the debtor is contacted after the payment becomes delinquent, the more likely a business is to recover the sum. Starting the call process within the first ten days is essential. The most effective means of recovery is to first call the debtor as a reminder and to let them know they will receive a letter in the mail. Then, immediately send the written request for payment.

Courtesy at the beginning of the debt collection process can go a long way. However, if this doesn’t work in the short term, it certainly won’t work in the long term. The longer it’s been the more adamant the debt collector should be insisting the debt is recovered immediately. A definitive consequence of nonpayment can eliminate the possibility of the debtor ignoring the calls.

One way to increase the bottom line is to pursue smaller debts first. These are more easily recovered because it is more likely a debtor can pay the smaller sum immediately. Debt collection is a more difficult task with larger sums, since these are often harder to gather and sometimes require working out a payment plan.

Cut off credit lines. For those in the debt collection process, it is necessary to restrict purchases to advanced payment options, meaning they are no longer extended credit by the company. Extending credit to clients with delinquent payments does not motivate them to pay the outstanding sum, nor does it drive home the insistence that all bills be paid on time in the future. If a debtor is unable to purchase needed supplies or services, they are more likely to find a way to pay the amount due.

With some determination and logic, a lot of time and money can be saved in the debt collection process while increasing the amount recovered in the pursuit. Being sure to stand firm in the resolve to reclaim lost money is essential to the success of the endeavor.

Also, explore more essential information and resources on debt collection, in addition to collection agency options and collection agencies solutions.