Companies must have a sixth sense when it comes to bad payers. The signs are there you just need to be able to spot them and take action before it becomes a problem. To detect these types of customers, companies must incorporate tools that allow them to be cautious when dealing with potential bad payers. This is essential and should become a fundamental pillar of every company. These tools grant you the ability to control additional financial costs that every company must carry out to survive. However, as every client is a unique individual, you also need to be able to know how to apply the right tool for the right situation. Essentially, the first step is to identify what types of bad payers you get.
Types of Bad Payers
There are two classes of potential customers that are usually bad payers. The first type that you need to be on the lookout for is new customers. The ones who are just entering the world of your company. The second potential bad payers are the ones who infrequently use your products and services. Both types of customers can cause an increased risk of default within your company than usual. Keeping track of each of these customers is a fundamental tool in the recovery of delinquent payers. The employee in charge should be wary and consider whether a client may be a future bad payer. It is true that there is a need to secure a sale and increase the number of clients within your company, however, you must never lose sight of your duty to search out potential defaulters. For this reason, it is crucial to always keep in mind what kind of customer you are interacting with. In doing so, you can precisely control the costs of the company.
Tricks of the Trade
When it comes to identifying bad payers, each company needs to develop certain skills and adopt certain practices in order to locate these bad payers. When it comes to new customers, the trick is to remain cautious with them as you still need to confirm their loyalty to your company. The solution for dealing with these customers is to translate your terms and conditions in a precise and clear way, reducing the possibility of ambiguity or misinterpretation.
It is always good to start investigating the past and present financial status of customers. In many instances, the customer may present themselves in an ideal way and make promises to pay on time. However, once the sale transaction deadlines and the payment terms have been defined, they show another face entirely. These types of negative experiences allow a company to find potential defaulters more fluently and thus control them accordingly.
Target the Right Tool
Any company needs to invest in the right tool to assist them in locating bad payers. The right tool expands the possibilities of finding future debtors within your company. The effects of late or non-payment can have a disastrous impact upon companies. MarisIT offers you the ultimate tool when it comes to tracing your bad payers. We understand that bad debtors always leave a trace. The key is to pick up their scent before it is too late. You don’t want to be the captain of a sinking ship because you let your bad debtors drown your company in debt. MarisIT takes control when the effects of your bad debtors are spinning out of control.
MarisIT places a target on your bad payers by sending out final demands and listing them as bad payers. This can ultimately help recover any outstanding amounts your client may owe you. A final demand letter is necessary before you can list a bad payer on any credit bureau. When it is sent to a non-payer, it notifies them of your intention to list them as a defaulter on a credit bureau. You can list a defaulter 28 days after the final demand letter was sent by post. A listing of a bad payer can include a company or individual who has broken the terms of the agreement in respect to the repayment conditions as set out therein. In other words, MarisIT converges and simplifies the debt collection process by offering a variety of comprehensive tracking options. You can conveniently gain access to the complete online credit vetting platform. This means that all of your online credit bureau reports are available on one web platform. Essentially, you will get what is owed to you all through one company.
You may be asking if this service costs more than what your bad payer owes you. The good news is that this service is not only effective it is also cost efficient.
- There is a once off admin fee
- You only pay for your actual usage
- The best part is that there are no monthly or yearly fees