Debt Recovery – Three Ps

The three Ps of Debt Recovery


All businesses have to face multiple demands and challenges every day. One of the most common is chasing up debts. Depending on the size of your company, this could be a job for the Credit Controller, the CFO or even the CEO. But whoever takes it on, the challenge is often tough.

Ideally, you want to ensure that outstanding debts are paid without the need for court action. One of the best approaches to effective debt recovery is to employ the Three Ps. In fact, the Three P approach can have wider applications outside the world of business.



It is said that patience is a virtue and this certainly applies to debt collection. You may not feel that patience is something you can afford if you want to keep your cash flow steady. But by taking a patient approach to collecting your debt, you can demonstrate to your customer that you are aiming to maintain a long term relationship. It shows a degree of empathy, that will help to nourish this relationship. There are many ways to show patience, including the offer of payment plans, and an orderly process of reminders about a debt, rather than bombarding the customer with demands.



When a customer isn’t paying on time, anger is a common reaction. Allowing your frustration to spill over into communications with customers is understandable, but it is a bad idea. Showing courtesy throughout the process, through polite communications, can ensure that the debt collection process doesn’t become heated. This is better for you and for your relationship with the customer.



Persistence is one of the key tenets of business life. Few businesses can get off the ground without a healthy dose of persistence. When a debt is overdue, consistent efforts to recover the late payments are the best approach, and far more effective than sporadic efforts. Here are some of the key aspects of bringing persistence to your debt collecting strategy.

Send your invoices and letters both by post and email, reducing the chances that your customer can claim that they never received them.

Draw up a consistent process for chasing debt and work through it steadily, ensuring that you stick to the timescale you’ve laid out.

Pursue options such as late payment interest and compensation, where appropriate. These can often be successful in persuading customers who are reluctant to pay that you are serious.

Consider outsourcing your debt recovery efforts to specialists. A modern debt recovery agency has access to a range of expertise and can help you to recover your debt efficiently and quickly.


Implement the Three Ps

There is no one way to guarantee successful debt recovery, but the Three Ps provide an overall structure that can help you to design an effective process. To find out more about the best approach to debt recovery or to get advice on how to best recover your debt, get in touch with us today.


CLI specialises in debt collection and international debt collection with over 10 years of successful support to businesses.