Are you a creditor that is experiencing some issues with your debt collection process and feel that improved debt collection techniques and communication could help to solve the problem?
If so, you may feel that you communication with debtors is not the best that it can be, which can cause a lot of stress for you and your business.
Communication is key. No matter what the circumstance or the debtor, being able to effectively communicate your needs and processes with your debtor is an important process.
It helps to ensure that they are on board with the plan initially and can ensure that any changes or challenges are discussed and dealt with effectively.
Not everyone is great with communication, however. Everyone has their skills and their flaws, one of which can be a struggle to effectively communicate.
So, how can I communicate better with my debtors to ensure that my debt collection process is effective and the best that it can be?
In this article our professional debt collectors will discuss several effective communication techniques that you can introduce to your business to help to find more success with your debt collection processes.
Debt Collection Techniques - Active Listening
The first technique that you can use to find better success in your communication in debt collection is active listening.
When someone is talking to you, you are expected to listen to what they are saying.
As much as people may come to you with the same excuses and reasons for not paying their debt over and over, make sure that you are intentionally with your listening and paying attention to everything that they say.
When a debtor (or anyone else involved in your business) is talking to you, make sure that you are trying to see their perspective and what it is that they are trying to communicate.
Always avoid interrupting or talking over them! This just leads to mutual frustration and stunts effective communication!
Debt Collection Techniques - Empathy and Understanding
Another great technique that you can use to find better success in your communication in debt collection is empathy and understanding.
Empathy should be the backbone of any business that involves collecting debt. Is this true, you may ask.
Surely I should be firm with my needs and get the debt collected by any means necessary.
Even if empathy is important, it can’t be the key to successful collection in a business as tough as debt collection, right?
On the contrary, empathy can be the difference between a client declaring bankruptcy and you receiving no payment at all, or a slightly changed agreement.
Clear and Concise Language
Another great technique that you can use to find better success in your communication in debt collection is clear and concise use of language.
No one likes to be confused or overwhelmed.
It can make a relatively simple situation seem confronting and difficult when it is complicated with language use or too many words.
Try to avoid doing this with your debtors.
Make sure your language choices aren’t overly complicated or industry-specific or you risk confusing your debtor too much!
Also, try not to be too long-winded with your conversations or emails.
By doing this, you may simply bore or overwhelm your debtors, so make sure you are nice and concise.
Debt Collection Techniques - Tone and Voice
Another great technique that you can use to find better success in your communication in debt collection is to control your tone and voice.
Always sound upbeat when you are communicating with debtors.
This helps to make sure that they feel heard and do not feel threatened or as if you are frustrated with the conversation, even if this is how you feel!
Debt Collection Techniques - Building Rapport
Another great technique that you can use to find better success in your communication in debt collection is building rapport with clients.
Try to find some areas of common ground between you and your debtor.
From both your perspective and that of your debtor, it can feel as if you have nothing in common and that you, as the creditor, have a sort of power over the debtor.
Try to avoid making your relationship feel like this! Don’t always talk business.
Try to occasionally ask a somewhat personal question in conversation, while being polite and professional of course!
This may just be a simple “how is the family?” or “how has your day been?”.
Clear Communication of Expectations
Another great technique that you can use to find better success in your communication in debt collection is clearly communicating your expectations.
Don’t be the creditor that hides the less favourable terms in the small print.
Make sure your debtor knows about the agreement that they are making before they get too far into it so that they can make sure that it will be a feasible option for them.
This can avoid things such as insolvency or other issues down the track.
Negotiation and Problem-Solving Skills
Another great technique that you can use to find better success in your communication in debt collection is negotiating and employing problem solving skills.
Problem solving can be difficult. As a creditor, however, it is an important skill to have, so make sure that you are open to negotiation and can communicate your needs, while allowing some leeway for discussion.
Debt Collection Techniques - Patience and Persistence
Another great technique that you can use to find better success in your communication in debt collection is having patience and persistence.
Debt collection can be quite tolling and take a very long time.
You have to be able to cope with the times that debtors cannot or will not pay for any reason and continue with the collection process.
Documentation and Record-Keeping
Another great technique that you can use to find better success in your communication in debt collection is documentation and record-keeping.
It is important to keep a clear record of important interactions that you have with your debtors for future use.
You never know how a matter will proceed.
You should always ensure that conversations discussing the debts are recorded so that they can be used for several things, such as improving communication or as evidence if the debt is not paid to the point of legal action.
Debt Collection Techniques - Hire a Debt Collector
Have you found that your debt collection techniques, no matter what you do about is, is not helping you with collecting your debts?
If so, it may be time to hire a debt collector. A debt collector is a professional and can be very helpful with collecting your debt for you.
They can help with other specific things that you may have to do before collecting a debt too, like finding a missing debtor with skip tracing.
Consider debt collection and submit your debt online today!
Advance debt collection is an Australia-wide commercial debt collection agency and credit and accounts receivable management. We can recovery your debts, conduct skip tracing, and manage your accounts receivable. We collect your debts for commission only. This means no collection, no commission. We are professional debt collectors with combined 20 years of experience to help you collect your debts. We are partnered with expert litigation lawyers with years of experience in debt recovery, enforcement, and insolvency. Under the Agents Financial Administration Act 2014 Advance Debt Collection Pty Ltd hold authority number 4583821 to act as a debt collector. ADC Advance Debt Collection® is a registered trademark.