4 Ways To Simplify Your Debt Collection Process and Debt Recovery

Missed payments need not always be intentional – many a time, customers forget to pay or think they’ve already paid. The debt collection process is an unavoidable part of the lending business, but it doesn’t have to be complicated if you understand the type of debt involved. As a financial lending organisation, it is important that you strengthen your debt collection and recovery strategies if you want to earn steady streams of revenue and save yourself from impending serious losses.

Understanding the Debt Collection Process: Steps to Take for Effective Debt Recovery 

Debt collection is a creditor’s attempt to recover consumer credit and loans that have not been paid back by a customer. With the right collection strategies, you can not only reduce the cost & time but also drive a better customer experience for debtors to understand their repayment options. This involves going beyond just sending emails and making repeat phone calls and instead resorting to a more contemporary approach of using a collection management system.

Ways to streamline your debt collection process for Better Results

Below are the steps that have proven successful in creating a more intuitive, effective, customer-centric and profitable debt collections process for managing money owed.

1. Sending Account updates in Real-time: Key Steps in the Collection Process

   A collections process that features automated synchronising ensures that delinquency data is updated in real-time. Features such as automated statement generation and sending payment notifications to customers can ensure that the customers are kept notified about their dues well in advance to prepare themselves. Credit recovery process automation also ensures that your agents don’t touch base and annoy the customers who’ve already paid off their dues. This not only saves time and cost but also prevents a bad customer experience from taking place.

2. Integrate contact preferences & behavioural segmentation into debt recovery strategies:

   Companies can record a borrower’s contact preferences to contact them with the most probable mode of communication. Digital channels are the most hassle-free way of getting in touch with borrowers today. Advanced analytics, machine learning, and automation can be used to deliver tailored messages through the customer’s preferred channels, at strategic time gaps.

3. Scheduled Tracking for Delinquent Accounts in Debt Recovery:

   Using scheduled payment reminders such as SMS texts and emails, are an easy way to follow up with a borrower. Systematic follow-up of borrower’s accounts reinforces a sense of seriousness and urgency for the customer to address their arrears.

4. Use Contact Collection System:The Best Debt Collection Tool for Businesses

   Contact is CRIFs 360 degree Debt Collection Management system. It is a secure end-to-end debt collection solution that helps organizations automate and streamline the collection process. Contact offers transparent processing while being scalable. It helps optimize collection costs and reduce human intervention by automating routine operations. The user-friendly debt collection software is essential for any collection agency aiming to streamline their operations can be configured easily and efficiently, its flexible yet secure user interface helps users to implement their strategies and configure the data grid as per their requirements for managing unpaid debt. To know more about Contact, visit the CRIF Contact product page today as it offers valuable insights for lenders and debt collectors in assessing credit risk.