Change in Client Payment Patterns Can Be A Warning Sign of Potential Credit Problems!
Patterns can help point out why or when someone will be making their next step. When evaluating a delinquent customer, take note on how often they pay, if any payment plan was put in effect, if they pay with cash or card and how much they pay.
At Point Credit Solutions, we have found it very beneficial to track payment patterns using our customized CRM system. When we have a debtor who is on a payment plan with a due date coming up, we simply send a reminder via email. This keeps the debtor informed and engaged in paying off their debt.
Or better yet, schedule automatic weekly or monthly payment on a credit or debit card to create consistency, and predictability.
We also find great success in tracking the number of days a delinquent account takes to be paid off. With past due accounts, the clock is always ticking. Once an account reaches 60 days late, internal collection efforts lose over 53% of their effectiveness. At 60-90 days, accounts become virtually ineffective to collect. Age is the largest deteriorating factor in the collect ability of delinquent accounts. By contacting debtors early, they respond more positively, and that increases the likelihood of a continued business relationship. We recommend referring accounts as early as possible and with our low costs and high recovery ratios, it is possible!
Bella Debo