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Keep you Debt Collection on Trend in 2023
Last year was another tough twelve months across most business sectors, with interest rate rises, supply chain problems and hiring freezes all impacting the ability of companies to stay afloat and in profit.
As 2023 gets into full swing, it is a good time to consider your priorities for the next year, and after some turbulent times, debt collection is likely to be at the top of many companies’ agendas. Even in this area, however, it is possible to gain or concede a competitive advantage in a sector that is modernising at pace. Here are the big four debt collection trends to know about in 2023.
Make your Debt Collection Digital
For some time now the financial services sector has been moving to a digital model and it makes a lot of sense that debt collection is heading in the same direction. By going digital with your debt recovery, you will be able to develop a more sophisticated and effective system of debt collection, providing multiple routes through which to contact your customers early in the recovery process.
Automatic Debt Recovery
The traditional approach to recovering debt has been very hands-on, involving direct communication with individual customers by collection agents. The problems with this approach include the risk of human errors, the tendency for different teams to work in isolation and broken communication.
By making your debt collection automatic, you can beat some of these challenges and boost both collection efficiency and recovery time. Debt collection software reduces the manual labour involved, offers customers a range of communication channels and self-service payment options, and can provide useful data analytics that can help you to improve your debt recovery system’s efficiency.
Customisation is at the heart of many modern business trends and is based on the principle of being flexible enough to adjust your business model to the needs of different customers. In the case of debt recovery, this means offering flexibility around such issues as changing payment dates or accepting a minimum payment. It is managed through data analytics and machine learning, which gathers behavioural data to produce personalised repayment and debt collection plans for each customer.
Empowerment through Self Service
Many customers feel that they lack any control over repayment processes, and this can lead to a less cooperative approach to late payment. One way to encourage full engagement is through providing elements of self-service. By allowing customers to pay through a self-service portal, they can feel empowered and this can lead to a more productive and cooperative relationship.
While following these debt collection trends can help to boost your ability to recover your debts quickly, there will be some situations in which the process breaks down. In these cases, it is often a good idea to consult the experts by calling in a modern, specialised debt recovery service, particularly in cases that involve international debt recovery.
If you are struggling with a late repayment issue, why not get in touch with us to find out how we can help you recover your debt quickly and efficiently, freeing you to focus on growing your business?
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