Improve your collection strategy and increase your revenue

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Automating financial functions allows for better practices in collection strategies . This is important to be able to obtain pending payments from our debtors and, in this way, greater liquidity and concentrate on other financial operations that are also relevant. However, the collection strategies we follow must be respectful of customers, while remaining firm and determined. In this way, we will achieve better control of cash flow without losing the portfolio.

What will you find in this text?

What is a collection strategy?
Aspects to consider before applying debt collection techniques
AI in debt collection processes with automated software
5 effective debt collection techniques
1. Improve customer communication
2. Offer payment options or facilities
3. Automate collections
4. Offer incentives to motivate debt repayment
5. Analyze the collection process
Tips for developing a successful portfolio recovery strategy
Financial automation benefits effective collection strategies

What is a collection strategy?
The collection strategy can be defined as the set of procedures buy zip code email lists collection methods that we use with the objective of recovering the overdue or future overdue portfolio . In the latter case, these would be preventive collection methods.

By having collection strategies, we will be able to have order regarding the portfolio and the tasks that we must perform with each segment of it, in order to obtain the corresponding payments. The segments can be classified in different ways; for example, based on the collection stages ; in order to follow different collection methods with each group.

Aspects to consider before applying debt collection techniques
Before applying the techniques described below, you need to take into account a few factors.

1. First, the identification of the type of delinquent client
The type of debtor can be classified based on the cause of the delay in payment; after all, dealing with a person who has liquidity problems is different from dealing with someone who evades payment by choice.

2. Second, the type of collection
Since the way in which a delinquent client is approached is different at each stage of the debt collection process, it is ideal to have a strategy for both the preventive stage (when there has not yet been a delay in payment) and the administrative, extrajudicial and judicial stages.

3. Evaluate the use of debt collection software
In addition, it is important to consider within the collection techniques whether automatic collection management software will be used , thanks to which it will be easier to segment the types of debtors and the type of collection. Automated collection systems also provide the benefit of being able to schedule communications with debtors, through different channels (message, collection calls, etc.) and even design personalized templates according to the debtor's status.