Key Components of an Effective Debt Collection Policy for Large Corporations

When large companies hit their stride, it’s like a snowball rolling faster downhill that keeps growing. Its own momentum carries them forward, and it feels like nothing can slow them down or stop them. However, not every sale they make results in money being where it should.

That’s why companies need to anticipate potential snags beforehand and plan accordingly. Summit A*R is proud to be a proven effective debt collection agency, as our track record speaks for itself: we collect nearly double the industry average. However, if you keep the following key components of an effective debt collection strategy in mind, you can pre-emptively prevent financial blockages from occurring.

Communication Goes a Long Way

Keeping everybody on the same page at every stage of their purchasing journey helps ensure your books are healthy and your customers are happy. Removing any doubt or uncertainty about how payment works in the first place prevents misunderstandings and failures to pay, while keeping debtors informed about the next steps helps ease their payments.

Close contact within the company also ensures your key people are in the know and aligned. No two companies are alike, and the approach and tone they take to communicate depends on their culture and identity.

However, communication may only take companies so far. They may not know what exactly to say or with whom to connect. Summit A*R makes reporting your customers to the credit bureaus a key piece of our strategy.

When customers realize that borrowing money in the future will be more difficult and expensive, they tend to pay their debts much sooner. Account A*R’s skip tracing department is run by a licensed private investigator. We know which buttons to push to help get payments forthcoming.

Tone Matters

Whichever tone you adopt when seeking payments, you need to be mindful of the effect it can have on customers and B2B partners. Even if you’re in the right and they really do owe the money, harsh or aggressive language can push them away and discourage them from doing business with you in the future.

Finding the right balance can be a tough tightrope walk. Thankfully, this is where Summit A*R excels! All our specialists are trained negotiators who view their job as seeking to help everybody they encounter find the best path forward.

Naturally, we maximize your debt collection and work to collect it as quickly as possible. But when speaking with customers and partners, we always avoid the ugly, unsavoury tactics debt collectors are sometimes known for, like robocalls, late-night calls, threatening or aggressive language, and more.

We are known as the friendly, ethical commercial debt collection agency, and we’ve worked hard over the years to develop this reputation. Whether it’s a customer or a business partner, there’s always a person at the other end of the line, and we always treat them with dignity and respect. Thankfully, not only is this more pleasant and humane, but it also helps us recoup more debts.

Ask for Payment Upfront

One simple way to avoid debt is asking for the payment right at the outset. Sometimes, customers appreciate being able to pay later, and allowing them to helps complete the sale. However, some customers have red flags on their profile, and deferring payments may be risky.

Perhaps you can ask for a deposit upfront instead of the entire cost. Large companies need to decide whether it’s better to invest the time it takes to profile new and old customers on these grounds or forego this process and accept any risk that comes.

Of course, Summit A*R can handle any customer payments that do slip through the cracks, so there isn’t really any “risk.” It’s just a matter of preference. Large companies do high volumes of sales, and outsourcing their debt collections can free them up to worry about growing their business rather than keeping one eye looking behind them.

Legal Compliance is Essential

Large companies need to follow all the laws and local regulations specific to their industry, or there could be considerable fines, lawsuits, or PR blowback. Ensuring legal compliance can be one of the bigger debt collection challenges for large companies in regulated sectors like healthcare, dentistry, or property management.

Summit A*R knows how to navigate HIPAA regulations and other regulations specific to certain industries. Large companies do business on scale, and one tiny error multiplied several times over could result in a major problem.

Rather than try sailing through these choppy waters yourselves, focus on what you do best and let us handle legal compliance instead. The penalties aren’t only financial in nature. Any privacy violation or breach of a regulation can cause PR problems that may be difficult or impossible to overcome.

We can get you safely and effortlessly to the other side.

Internal Revamp

There are things you can do to mitigate the need for debt collection, but nobody can eliminate it entirely. Sometimes, customers have understandable reasons for being unable to make payments on time, and nothing a company can do can change that.

However, it’s possible to revamp your internal debt collection processes to become more efficient and effective. Summit A*R offers customized debt collection teams that can work closely with your HR personnel to optimize their approach.

An improved debt collection strategy can be a major boost because the lift it gives companies compounds itself. A little improvement over and over has exponential effects.

Our consultants can find the right places to tweak and refine in their internal processes. Companies may decide after consultations to outsource their collections entirely. They’re free to choose as they see fit, but after our discussions, they’ll be making an informed choice.

Business leaders in companies at the top of their sector know their markets and their operations better than anybody else. That’s why they’re at the steering wheel, leading their teams. Partnering with an experienced professional debt collector who recoups more money sooner and without alienating your clients, customers, or partners can be a very effective way to ensure no money slips through the cracks. Connect with Summit A*R today for consultations that can improve your in-house collection methods, or let us take over them entirely.