Tips for Debt Collection

Tips for Debt Collection

Debt Collection is an unfortunate aspect of business life. From time to time, clients and customers have difficulty paying, and in difficult economic times, debt inevitably increases, for a variety of reasons.

The process of debt collecting can be stressful and complicated and can result in you having to take time away from the important day to day business of your company. Still, there are techniques and key points that you can focus on to help make debt recovery more efficient. Find our more below a few tips for debt collection.


Before you contact a customer over a debt, do your homework. This includes having copies of all relevant documentation to hand so that your discussion will be informed by facts.


Keep records of every conversation and interaction with a debtor, and when it comes to telephone or face to face conversations, write down the details as soon as possible after the conversation, while it is fresh in your mind. This will help to avoid unnecessary disputes later on.

Assume Nothing

Debt occurs for many different reasons. Professional debt collection agencies are adept at responding flexibly to the particular circumstances of a debt, and this is a good approach to adopt. Don’t go into discussions assuming that the debtor is a deliberate non-payer, listen to what they say and you maximise the chances of resolving the debt and keeping the customer.

Self Control

Having someone owe you money can be frustrating, but it is important not to let that spill over into your discussions. Taking a courteous approach, listening to what the debtor has to say, and keeping things polite and professional is the best way to go about the initial stages of debt collection.

Avoid Manipulation

In some cases, debtors will tell you their non-payment is due to the actions or non-actions of a third party. While it is important to bear these possibilities in mind, don’t take these reasons at face value. Do your research and try to establish whether they are genuine.

De-escalate Confrontation

Sometimes a debtor can become abusive. If the situation is angry or hostile, it can be a good idea to suggest continuing discussions at a later date. Always try to keep communication constructive.

Offer Options

One of the guiding principles of modern debt collection is flexibility. By offering different options for a debtor to repay, and working out a repayment plan that fits with their circumstances, you can often find that the debt collection process is more efficient and effective. And once a repayment path has been established, outline the details of the agreement clearly so there is no confusion.


It is important to maintain communication with your debtor. Even if they are struggling to pay in the short term, that may change and by keeping lines of communication open, you will be able to respond if their circumstances improve, and negotiate an effective debt collection plan.

Debt collection is rarely easy and can be a major source of distraction and cash flow issues for your business. That’s why many organisations opt to employ the services of a modern reputable debt collection agency. Get in touch with us today and find out how our debt recovery services can help. 

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