Unpaid debt is a massive problem in the United States, not only for consumers but businesses as well. Debt settlement is the act of accepting less than what a client or customer owes to get delinquent accounts off the books and generate some form of compensation you otherwise wouldn’t receive.
It can be a tough decision to make, especially when you are justified in collecting the debt. However, it can be good for your business in the following ways:
The process of getting a past-due client or customer to pay can be a painstaking one that requires resources in both time and money. Approaching clients through the mail, phone, or email taxes resources that would be best put to use in other ways.
There always comes a point in the process where diminishing returns have to be considered. If the amount of the debt is consuming labor, materials, and time in a way that takes away from your business, then debt settlement may be a viable option.
Providing Support to Other Customers
All businesses, from largest to smallest, have limits to what they can do. At a certain point, too much effort in one area will start to detract from another. Before deciding to pursue a debt settlement, it’s important that you do a serious evaluation of your operations.
Is pursuit of the delinquent account interfering with the level of service that you could be providing to your other customers? The answer to this question will depend on how your business is set up and what resources are available to you. If your customer service resources ever have to make a choice between pursuit of an unpaid debt or enhancing the quality of service to your other clients, go with the latter.
It’s a more positive approach, and it will allow you to get more out of the clients or customers who are proven payers.
Debt settlement means taking less than what is legally owed to you. It’s a decision that directly affects your bottom line. When that occurs, it can be a tremendous motivator for going back to the basics.
These “basics” will motivate you to refine your processes and implement better decision-making practices so that you can eliminate most of the business that goes into delinquency, or at least position yourself to realize a higher percentage of repayment should something go awry.
The Best Debt Settlement Path
If you are in a position where debt settlement is the best option, then the best thing you can do is not handle it alone. Trust the task to a professional organization like Southwest Recovery Services. Our knowledge of the rules and regulations as well as our seasoned approach for getting you more of what you deserve can keep your business’s focus where it needs to be — on day-to-day operations. Contact us today to learn more about all the options available, or stop by one of our many offices.