Determining The Best Debt Collection Approach

It is vital that any business, especially those offering products or services on credit, manage their debtors effectively, particularly in matters of payment terms. This can be done by identifying and differentiating between your slow-paying debtors (also slow-paying debtors with which the company intends to continue its relationship) and the non-paying debtors.

Determining the appropriate approach.

With slow-paying debtors, it is generally advisable that a "soft collection" – process is followed. The purpose of soft collection is to negotiate for a suitable repayment plan that will benefit both parties, rather than instituting a costly formal litigation process against them.