In the face of fluctuations in the economy, it is very difficult to control finances: companies end up losing working capital due to lower demand and customers reduce purchases to keep their bills up to date. However, even taking proper precautions, default is inevitable in many cases. Given this, how to recover the credit of your consumer without damaging the relationship and also ensuring the pace of sales? Because this is a sensitive matter, it requires precautionary measures when it comes to collecting. Before we explain, let’s understand a little more of this process.
What is credit recovery?
Recovering credit is a collection operation that aims to help the delinquent to remedy their debts and regularize the situation in order to make new purchases. For the entrepreneur, this means receiving an unpaid amount and, in the future, winning new sales.
Imagine the following fact: John went to a store to buy gifts for the whole family and split in 6 times. However, he began to delay the installments and ended up not paying the last one. After 30 days, his name went to the Credit Protection Service (SPC), making it impossible to buy, not only in the place where he bought the goods, but in any other trade that makes a prior analysis of his financial record.
What does he need to do? Retrieve your name in the square to be able to buy again.
How? Contacting the store to negotiate your debt. This way, John will regain his credibility in the market and will be able to make new purchases, financing, whatever he needs.
What does the store that took the default want? It is worth remembering here that it is important for the company to be willing to propose new payment terms to facilitate the repayment of customer debt. That way everyone wins: you get your money and guarantee consumer satisfaction at a difficult time in their lives.
Tips on How to Recover Credit
Repossessing a debt and claiming customer credit is not an easy task, but there are some possible actions that can be taken that avoid inconvenience and headache for both. With that in mind, we’ve come up with some tips for you. Look that!
1 – Identify Delinquent Customers
Before entering the customer’s name in the SPC, it is essential to identify the customer in your system and contact them to try to resolve the situation before getting their name dirty in the square. After all, it may be going through a bad time that made it impossible to repay the debt. Perhaps a longer term or installment to repay the debt is the solution to this problem. Ideally, you should tailor your approach to the customer profile, so they will see your company as a partner in this difficult time.
2 – Keep it active on your system
Even if the consumer is in the debtor situation, do not block him from further purchases when the payment term expires. Often, the delay may be due to forgetfulness, so please allow 10-15 days and then contact us to remind you of the installment.
3 – Preserve Your Customer Portfolio
A good pre-sale deal will help you much more than a credit recovery. So always try to understand your customer’s needs and strike a deal that is favorable to both parties. This is a good way to get out of default.
4 – Use technology to your advantage
Technology is here to help us and make our daily lives easier, isn’t it? So we can’t stop using it to our advantage. Instead of making several calls that end up disturbing the customer, you can choose, for example, to send a message via mobile phone or an email to remind them of the payment.
Outsourcing the billing process is a good alternative to negotiating your consumer debt without resorting to lawsuits. After all, this is a delicate job. It requires someone who is knowledgeable and able to handle every situation so as not to damage their relationship with the customer.