Voluntary debt collection usually starts on the due date
The phase of voluntary collection usually starts from the due date. At this phase, the creditor can send payment reminders to the customer with letters, phone or email for example, or make payment plans with the aim of getting the debt collected.
Voluntary debt collection works quite well, and most of the unpaid, debt-collected invoices are successfully paid through voluntary debt collection.
The steps of voluntary collection
The steps of the voluntary collection process differ depending on whether the customer is an individual or a company.
Voluntary debt collection in consumer debt collection
The steps of the voluntary collection in consumer collection can be roughly divided as follows:
- Sending payment reminders and collection letter
- The first step is to send payment reminders, in which the creditor requires the customer to pay the debt.
- If the Payment reminder does not have the desired effect, the next step is to send a collection letter and add collection costs.
- Offering a payment plan
- The second step could be to offer a payment plan. If the customer is unable to pay the debt at once, the creditor can offer a plan to manage the debt in instalments.
- If the debt has not been able to be collected voluntarily, through voluntary collection, there is an option to continue the collection through legal collection.
Voluntary collection in corporate debt collection
More varied means of collection can be used in corporate debt collection than in consumer debt collection. It is beneficial to strive for a rapid collection by promptly reminding of the receivables.
The steps of the voluntary collection in corporate collection can be roughly divided as follows:
- Sending payment reminders and collection letters
- The first step is to send payment reminders in which the creditor requires the company to pay the debt.
- If the Payment reminder does not have the desired effect, the next step is to send a collection letter and add collection costs.
- Offering a payment plan
- The second step could be to offer a payment plan. The creditor can offer a plan to manage the debt if the company is unable to pay the debt all at once.
What are the methods in the voluntary debt collection?
The goal of the professional debt collection company is to open a dialogue with the customer and try to agree on a payment plan or one-time payment. Customer-friendly and flexible customer service is always in the core of Kredinor’s collection services.
Debt collection companies use different means to achieve their goals during voluntary collection. They can send payment reminders and payment requests in written, have contacts by phone, email or text message. We at Kredinor can offer you a modern and customer-friendly service that also includes an active phone collection.
Mere a late payment does not cause a payment default entry
A debt collection claim does not result in a payment note in the credit reporting companies’ registers. But if the company or debtor neither pay nor dispute the claim, it may lead to them receiving a payment notice at a later stage.
A payment notice is a statement from a credit reporting company that shows that someone has not paid their debts on time.
The debtor can receive a payment notice when they have received a decision (judgment) that they are obliged to pay or do something.
A company can receive a payment notice when the enforcement agency receives an application to pay or do something. The decision or ruling can also result in a payment notice for a company.
Voluntary debt collection methods should be used – you can get your receivables faster and cheaper
Modern, active and customer-friendly service is at the core of the voluntary collection. Voluntary debt collection works quite well, and most of the unpaid, debt-collected invoices are successfully paid through voluntary debt collection.
Thus, it is worth investing in voluntary collection methods. Compared to the legal collection, voluntary collection helps you to get your receivables faster. The costs of legal collection may also become large.
Voluntary debt collection can help your company to achieve your business goals for example in the following ways:
- By improving the cash flow
- By reducing the credit losses
- By strengthening the company’s reputation.
Let Kredinor help in all phases of debt collection
We are your partner in all matters related to open receivables, up to legal actions if necessary. We handle the debt collection efficiently, reliably and in such a way that the customer relationship can still continue in the future – no matter whether your client is a consumer or business.
We offer at your service a modern and customer-friendly service that also includes active telephone collection. You can easily follow all actions taken and the status of assignments in real time. The reports you need, you will have easily and quickly.
Transparent operation, automated processes and modern systems make us a reliable and efficient partner that can produce a high-quality service even for large billing volumes.
We can flexibly agree on which part of the collection process you want to outsource. If necessary, we can also help with disputes, bankruptcy supervision and other special collection procedures. You can also use our international debt collection service in case the open receivables arise abroad.