Creating a collection department in the company is important to deal with default — especially in the market, where a large part of the consumer public has difficulty paying their bills. It is estimated that about 41% of the adult population in Brazil was in default in 2018. In relation to the previous year, there was a growth of 4.41%.
To deal with this reality and not compromise the financial health of your institution, you need to develop an area to carry out collections. It is also necessary to employ a strategy that increases the probability of receiving overdue debt.
We have separated some tips for structuring such a sector and for optimizing your routine (if you already have one) in order to reduce default. Follow up!
Define and train the team
To get started, define the members of your finance department, or another department, who will be responsible for the billing area. If you cannot relocate any current employee, it will be important to hire someone to work in this sector.
After that, it is important to train your team so that they can work with debt negotiation, collection methods and organization of routines specific to the area. It is essential to train it based on the legislation that guides the collection and other peculiarities of the area.
Learn, for instance, the provisions of Law No. 8078, of September 11, 1990, which protects consumers against default. This article discusses guidelines for the collection of a financial pending, as described below:
Art. 42. If a consumer defaults on his payments, he or she will not be subjected to ridicule, embarrassment, or threats in the process of collecting debts.
Constantly update the defaulter’s report
It is necessary to compile a report with the defaulters for a given period (week, month, two months…) to facilitate the monitoring of each debt. That way, you can see who’s been late on a recent payment and who’s been overdue for a long time.
It’s important to keep this track, because the sooner your team contacts someone who has missed an invoice, instalment or monthly fee, the greater the chance of getting the amount owed.
The company must be present, especially if the defaulter has several other bills to pay: he is likely to choose the one he remembers.
It will also be possible to propose an agreement in the period in which the client receives the salary, to ensure that the debt with your business is prioritized.
Split charges by group
Organizing charges by payment category helps define the communication channel, the type of agreement to be made and the degree of follow-up required. For example, if the customer wants to pay in cash, by means of a bank slip, it is possible to offer a certain discount.
If you prefer to pay in instalments, then the discount must be different. In addition, it will be necessary to monitor the discharge of each instalment and establish a new way of acting, in case there is a new delay or lack of payment of one or more instalments.
Offer benefit to those who close a deal
It is indicated to offer some advantage to those who close a debt renegotiation agreement or advance instalments of an amount in arrears. It is possible to eliminate interest or penalties, allow the payment of a debt in several instalments and even grant a discount on the debt.
These options need to be defined in the collections policy and in the debt negotiation strategic plan of the collection department, to guide its professionals. They should be based on factors such as the amount owed, length of relationship with the consumer and your current financial situation.
In addition to helping to capture the value of overdue accounts and balance the financial health of the organization, the collection sector is essential to maintain a good relationship with the public.
There are many reasons for not paying a bill — such as momentary unemployment, error planning the budget and even forgetfulness. This does not mean that the client cannot close the deal again in the future. Therefore, your team must act with politeness and respect.