Kenstone Capital - 7 MOST COMMON B2B DEBT COLLECTION MISTAKES

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Kenstone Capital
Debt Consulting

• B2B Debt Recovery Agency

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• While running a business, collecting the past due
  payments from your business customers can be one
  of the most daunting aspects. Heres a simple
  fact Its easy to make a mistake when engaging
  in debt collection for companies that arent
  specialized in debt recovery. In fact, the debt
  recovery industry is so mired in regulation that
  the likelihood of making a mistake is quite high.
• If you are building your credit program, you may
  not be familiar with some common errors or
  mistakes that business owners make while
  collecting past due accounts.
• Here is the list of some common mistakes that may
  encounter while collecting b2b debts from your
  customers.

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1. Unaware Of The Expenses That Are Incurred In
Debt Recovery

• Before you focus on an initiative to recover your
  business clients past due receivables, it is
  important to evaluate the costs that are imposed
  in debt recovery process and so, that you can
  know whether your collection efforts are going to
  be justified or not. During such circumstances, a
  collection agency will help you determine what
  those expenses are.

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2. Harassing The Customer Unintentionally

• There are several laws that companies need to
  obey while seeking to get back their clients
  debt. Such rules prohibit a debtor from
  intimidating or harassing a customer while
  attempting to recover a debt. Excessively
  persistent or forceful demands may constitute
  harassment which is contrary to the rules on debt
  collection. These conduct sanctions include
  punitive damages, or even litigation. Before
  dealing with debt collection, you need to make
  sure that you are aware of the debt collection
  laws in your area to avoid such penalties.

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3. No Credit Policy

• In general very few businesses have a credit
  policy which holds a potential impact while
  recovery of debts. A credit policy identifies
  low, medium or high risk clients. This
  segmentation will help you set guidelines on
  credit limits and help organize collections. If
  you dont have a good credit policy, you could
  end up extending credit without taking
  precautions to everyone. That can leave you with
  a lot of unpaid debt from past due invoices.

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4. Outdated Client Records

• Unlike outdated client records, updated client
  records allow you to detect the raise of
  potential debt issues. It allows you to take
  control of a debt issue, rather than the debt
  that controls your business. We all know about
  seemingly prosperous firms that just went
  bankrupt because they didnt have enough cash to
  keep doing business. If you allow bad debtors to
  dominate your corporation, youll probably follow
  the same path. The most useful resource when it
  comes to managing a business is an actual client
  record. It will help you monitor customer
  behaviour and curb debt problems before they are
  going to happen.

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5. Irregular Follow-ups

• A clear follow-up strategy helps you get paid
  more quickly and avoid bad debts. Additionally,
  prompt collection of past due accounts will help
  you maintain a healthy cash flow. A good
  follow-up system includes getting in touch with
  debtors on time, setting credit limits, credit
  checks and implementing a good credit policy.
  Hence, following through on any past due balances
  is essential to increase your chances of debt
  recovery promptly and consistently.

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• Failing To Communicate On A Daily Basis
• Lack of timely and regular communication with
  debtors will leave you with huge sums of unpaid
  debts. Its important to always note that
  communication is a key to the relationship
  between debtor and creditor. Companies that use
  only one or two methods like sending emails and
  letters to reach a past due clients arent going
  to be reliably imaginative enough to get the job
  done. A telephone call is surely one of the best
  channels of communication, and it becomes even
  more difficult to ignore someone when they speak
  directly to you.
• Waiting Too Long to Hire a Commercial B2B Debt
  Collection Agency
• Most businesses are too patient when it comes to
  debt collection, and wait too long before
  contacting a commercial debt collection agency.

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• The main reason behind this phenomenon is the
  fact that their account receivables do not set
  the payment deadlines. It is prudent to be rather
  impatient when it comes to debt collection.
  Waiting longer to employ a debt collection agency
  to recover your past debts is one of the most
  common mistakes that companies make when they try
  to collect past debts.
• It can be challenging to receive payments on
  time. When trying to recover your past due debts,
  one of the best things to do for your company is
  to hire a commercial b2b collection agency as
  soon as your client is already 90 days late in
  paying your invoice. At Kenstone Capital, We help
  you cultivate and retain positive working
  relationships with your customers by providing
  our clients with non-contentious solutions
  through our amicable debt collection services. We
  specialize in helping businesses to collect their
  past due receivables. Call or email us for a free
  consultation and get a free price quote!

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• Do you want to recover your bad debt?
• Contact us
• Kenstone Capital Pvt Ltd.
• Phone [phone]
• Email info_at_kenstonecapital.in

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