React as soon as possible to a late payment
Collecting unpaid debts is a race against time: the speed of intervention is key to maximizing your chances of success. For this reason, it is essential to detect late payments as early as possible, so that you can act as quickly as possible once the unpaid payment has been identified. Monitoring your aged receivables requires rigorous and professional organization. When the contractual payment deadline is exceeded, the first reaction should be to send a first reminder to your client by email. After several days without a response, it can be followed up with a phone reminder, before proceeding with a reminder by mail. These initial reflexes are often enough to satisfy a client whose late payment results from a lack of organization. However, if reminders go unanswered, an notice must be sent by registered mail. Throughout this reminder process, you must pay attention to identify the reason for non-payment. The information gathered allows you to determine the best course of action, whether for an amicable settlement or even legal proceedings…
A solution for managing reminders
management software improves the monitoring of aged receivables. It allows you to generate automatic reminders
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when a late payment is detected, and to easily track the progress of each unpaid case. Amicable recovery: the virtues of direct contact
In more than eight out of ten cases, amicable negotiation is the best option for recovering your unpaid debts. This solution is less time-consuming and less costly than legal proceedings, while having the advantage of preserving the relationship. However, an amicable result is achieved through a good dose of diplomacy and especially a strong mastery of negotiation techniques. This type of approach involves a face-to-face meeting at the debtor’s premises, ideally unexpectedly to benefit from the element of surprise. An in-person meeting does not equate to eliminating misunderstandings and detecting disputes or blocking points that delay payment. This direct contact should lead to a potential dispute or a consensus satisfactory to both parties. If direct contact with the debtor is not possible, the last resort is to initiate a legal procedure.
The payment schedule, the best consensus
The preferred solution for amicable recovery is the establishment of a payment schedule. This distribution of the debt is a realistic scheme in a tense economic context, adapted to the cash flow difficulties that a debtor subject to late payment may encounter. A good payment schedule opts for the shortest possible installment and is accompanied by interest on late payment
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to compensate for the time allowed. Neutral intermediary for increased efficiency
The use of a neutral intermediary is a decisive success lever in amicable recovery. Having a professional with a solid legal background and a mastery of negotiation techniques greatly enhances your chances of recovering your unpaid payments while preserving the business relationship. This is the approach favored among collectors. Their concern to find a mutually beneficial solution is appreciated by debtors, as is their neutral position, which avoids the tensions of a direct confrontation between creditors and debtors. They are therefore in the best position to unlock a frozen situation. The professional approach of a negotiator involves identifying the reasons for the debtor’s insolvency to determine the best compromise. The geographical proximity between the negotiator and the debtor, as well as their knowledge of the debtor’s professional issues, fosters a constructive exchange aimed at a quick settlement. To these strengths is added a refined art of diplomacy, to be managed wisely and with determination. The priority is to recover all your outstanding claims.
The importance of supporting
The preservation of proof of a service is an essential prerequisite for improving the recovery of your unpaid debts. Quotes, invoices, purchase orders, delivery notes… These documents allow you to authenticate the service
, which will be to your advantage in the amicable negotiation phase or in the event of legal proceedings. Euler Hermes is a global leader in commercial debt recovery and provides its expertise to its policyholders at every stage to optimize the recovery of unpaid debts. Discover the overlay performance with Euler Hermes.
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