Debt Collection: A Process That Is Both Hated and Beneficial
“I hate calling random people I don’t know to talk to them about money, calling them out on a late payment, and opening Pandora’s box of disputes.”
You’ve heard that before, haven’t you?
Yet debt collection is an activity with countless benefits:
- Step outside your comfort zone, try new things, and develop a new skill
- An opportunity to do better: By identifying a source of dissatisfaction and allowing the project manager to make adjustments? By discovering a new billing process for this client and adapting to it as quickly as possible?
- Project a professional image to your customers by following up in the right way at the right time
- Build a relationship with your clients’ accountants, who dislike unpaid invoices just as much as you do
- Work as part of a team with the internal accounting department, sales, and delivery
So, what are our tips for finally enjoying the collection process?
Tip #1: Define the steps in your debt collection process
Ready to try preventive collection? You know who your delinquent payers are—so why not send them a preventive reminder alerting them that their invoices are due in 10 days?
- Invoice follow-up based on due dates: past due by 30 days, then 30 to 45 days, and for those past due by more than 45 days
- Collection efforts based on the outstanding balance and the factor’s credit approval
- Follow-up Based on a Customer’s Length of Time as a Customer
- Identify the most important criteria for defining your internal process
Don’t hesitate to automate your follow-ups and alerts; this will enable proactive management and reduce late payments.
Tip #2: Personalize your messages
Be sure to create message templates that align with your company’s brand image.
But also the tone used by the employees responsible for adding their names to this email!
And finally, you need to craft a message that fits the stage you defined earlier: a preventive collection message cannot be identical to the last friendly reminder—and vice versa! Build up the intensity gradually!
Tip #3: Get the right people involved
As you go through each step, you’ll have the option to add recipients to your follow-up emails.
So why not take advantage of a little internal support (the sales rep in charge of the deal, the project manager, the CFO, etc.)?
And a little outreach to external parties (the person who signed the order, the purchasing department, etc.).
Bonus: On the customer profile page at >, under the “Invoices” tab, you can see the date of the most recent follow-up action for unpaid invoices! This makes it easy for your sales reps to access this information.
Tip #4: Focus on factored customers
You’ve chosen a factoring solution and decided to retain control over collections. Great! Now, you need to prioritize processing these outstanding assigned invoices by using the dedicated filter “Payment method = factoring.”
Tip #5: Talk directly with the client’s accounting department
It’s the dreaded step: making a call!
What could be better than a pre-written call script to support your teams? And we’re not talking about excessive standardization—we’re talking about helping your employees present the best possible professional image.
Tip #6: Be a good fan of your teams!
By setting up an action trigger to receive regular updates on the collection actions taken, you’ll be sure not to forget to commend your teams for their dedication.
Want a secret to motivate your team?
Just tell them they don’t have to be rude! Collecting payments with a “solution-oriented” approach is much more pleasant and rewarding.
Debt collection isn’t just an administrative task. It’s also a strategic opportunity to strengthen relationships with your customers and improve your company’s financial health.
By following these tips and adopting a proactive and collaborative approach, you will transform this activity—which is often viewed negatively—into an effective driver of growth and development.
Don’t hesitate to rethink your methods and continually adjust them to achieve the best possible results. Success in debt collection lies in consistency and adaptability.
