Here at Collectmore Debt Solutions, we love payment arrangements. Whilst in the very first instance we will always request payment of the debt in full, obviously this is not always possible and we will then discuss a payment arrangement with the customer and also our client. Anything is always better than nothing, and getting paid in full over time is always preferable to not getting paid at all. Payment arrangements are a fantastic way to recover your money and the beauty of them is than once the customer starts paying, they soon get into a routine and reducing the overall balance becomes addictive.
Here are our top 5 ways to make payment arrangements work for you and your business:
- Agree on the installment amount with the customer. Demanding a certain amount that they clearly cannot afford or sustain is destined for failure. Have them commit to an amount they are comfortable with.
- Weekly is best. Fortnightly and monthly installments are too fraught with risk.
- Confirm the payment arrangement in writing. This adds credibility to your business and formalizes the agreement which makes them less likely to default.
- Explain consequences of non-payment of an installment, which may lead to the arrangement being cancelled and the full amount due and payable once more. Explain that if they are unable to make a payment for whatever reason, they must notify you the day before it is due.
- Send regular updates to your customer on their progress, thanking them for their most recent payment and giving them the remaining balance. People want to know they are making progress and positive reinforcement is very powerful in this instance.
There you have it folks. Always offer your customer a payment arrangement if they are unable to pay in full. Even if they are ignoring your calls, emails and letters, reach out to them and offer one. $100 per week as a default is ideal.
Cheers