5 Easy Debt Collection Techniques for IndividualsLast modified: August 3, 2023
5 Easy Debt Collection Techniques for Individuals
Does an individual, such as a friend, family member or a customer, owe you money? Have you loaned money to someone with the intention of being paid back, only to receive nothing?
When an individual loans money to another, this is usually done so out of their good nature.
It can then be particularly disappointing when they take advantage of your kind-heartedness by leaving you out of pocket.
It has been recorded that, out of a 1,000 person survey, 53% said they would see a friendship end over money.
Getting an individual or customer to pay should not have to feel like a chore, especially if the money is rightfully yours.
Utilising the right methods for debt collection is the key to maintaining a positive customer relationship.
We have outlined some quick and easy debt collection techniques for individuals to collect debts owed to them.
5 Debt Collection Techniques for Getting Paid
Undertaking the collection process for outstanding debts should not have to feel like a painful task to complete.
This is especially true for those, like yourself, who have to conduct the recovery independently.
In reality, there are a number of debt collection strategies that can be used to help recover money quickly and efficiently.
Effective debt collection techniques will help to recover overdue payments and ease the strain on your cash flow.
Get them to pay upfront
For the business owners, sole traders or self-employed individuals, an example of good debt collection techniques is to ask for payment upfront.
This is by far the most obvious technique for getting paid, as it negates any chances of payments being late.
Whilst this is not a common payment method, if your customer wants the services enough, they will pay before they receive them.
Send a payment reminder to the debtor
If you have a good enough relationship with your debtor, it is worth giving them the benefit of the doubt if they miss the payment date.
We recommend that you get in contact with them to remind them of the payment and advise that it is due soon/past due.
Payment reminders can be carried out in a number of ways including phone calls, emails, letters, and texts.
You should always keep paper trails, should you have to escalate the matter further in future.
Payment terms are a staple of any business transaction, outlining how much is to be paid and on what date this should be paid.
These should be discussed before any goods or services are provided to outline the customer’s obligations.
It may feel foreign to use payment terms if the person you have loaned money to is someone more personal, such as a friend.
If this is the case, you should have them agree to a date on which they will pay and get it in writing.
There are many things that can dictate whether or not a payment is going to be made on time.
One of the main reasons for this is financial difficulties, which can crop up at any time and without warning.
If your debtor is experiencing this, it may be beneficial to discuss a payment plan with them.
The amount owed to you will be split up into smaller payments, however, this means you will eventually be paid in regular intervals.
Debt Collection Techniques – Contact a debt collection agency
If your delinquent customer debts have still not been paid after the above debt recovery techniques, you need to speak to a professional.
The use of specialist debt collectors for issues related to accounts receivables is by far the best option for any individual.
If a debtor receives debt collection calls from a local debt collection agency, this is enough to indicate how serious you are about collecting your money.
Frontline Collections, for example, are known as the UK’s leading private debt collection agency, with expertise in recovering amounts of money for individuals like you.
If you are owed money, get in contact with our experts today to kickstart the debt recovery process.
What Are The Best Debt Collection Techniques? – FAQ
What should I do if an individual owes me money?
When money is owed to you, you should be proactive by following the debt collection techniques outlined in this guide.
How long will it take to recover a debt?
The reality is that the older a debt becomes, the longer your finances are put in jeopardy and so it is recommended to act quickly.
How much does it cost to use a debt collection agency?
The cost of debt collection depends entirely on the case in question. Frontline Collections’ offers a low-cost service by operating on commission fees of as little as 8%.
What happens if my debtor is based overseas?
If your debtor owes you money from overseas, we can initiate international debt recovery to collect this.
How do I instruct you to recover the money owed to me?
Our debt collection experts are on hand to help with all enquiries you may have – get in contact with us today.