First contact with the payer
The first contact with the payer should be made even before the due date. Under the pretext of confirming the customer’s receipt of the invoice, it is a good idea to remind yourself by phone to pay it by a certain date. This is not yet a common practice in Poland, while it is worth breaking through and trying such a preventive measure. In this way, we will make it clear to the contractor that we will not tolerate delays.
Due date another reason to recall
The next conversation with the payer should take place on or shortly after the due date. At that time, you should make sure that the customer has remitted the payment. If not, there is really no point in delaying the intervention! The payer should be firmly reminded of the need to pay the amount owed, and another deadline for payment should be set. If, despite the expiration of the second deadline, the amount due has not reached the creditor’s account, you should make another phone call or send a letter with a final demand for payment. It is worth stipulating in the conversation with the debtor that if he fails to do so again, the case will be referred to debt collection.
Benefits of a trust assignment agreement
Monitoring of receivables generally takes about 30 days. After that, unpaid receivables automatically go to pre-court collection. Monitoring is often done in-house by companies. However, it is important to note that for companies with a wide portfolio of customers and a large number of receivables, they may have trouble conducting monitoring activities efficiently and effectively.
A major challenge for the company’s internal resources
The introduction of such a control system involves a great deal of involvement from the finance and collections department, which provides employees with further time-consuming duties. Conducting monitoring is also a major challenge for small and micro enterprises, which usually do not have enough employees to burden them with the additional task. In addition, entrepreneurs often prefer not to admonish their receivables, especially when small amounts are involved, fearing that such an action will damage the business relationship with the customer. Engaging a professional debt collection company for this purpose solves this problem. In addition, an external entity inspires much more respect and is more effective in mobilizing payers to pay their obligations on time.
If an entrepreneur decides to use an outside company, the key to proper monitoring is ongoing cooperation between the principal and the monitoring company. The transfer of the necessary information is usually carried out electronically, and the hired company keeps the client informed of the progress and results of the ongoing activities.
