B2B debt collection has its challenges, especially with smaller debts – and we’re here to help. As a business owner you know that maintaining a healthy cash flow is the lifeline of any business. Often uncollected debts and recovery rates are tedious, manual and waste a lot of valuable time. Time is money. Wasting time chasing money has a knock on effect, in turn, on your overall business’ success. So how do we deal with this?
Well, TRAQ debt collection software will help you take on challenges and increase collections – providing a seamless and automated collections management platform so you can focus on what matters the most, your bottom line!
What is B2B Debt Collection?
It’s quite simple. B2B debt collection is recovering outstanding invoices or payments between you and other businesses you deal with. It’s imperative for maintaining your business’ cash flow and financial growth, don’t let it go.
Often, it is larger amounts of money involving complex payment arrangements and agreements – which we know is something you really need to focus on for financial success. This process usually involves stages like friendly reminders, negotiations and potentially legal action.
However, maintaining a positive business relationship is a priority.
How Do I Improve My B2B Collections using Best Practices?
The short answer – TRAQ software. Collections software will help you run your business smoothly and efficiently. Let’s address some common challenges and how TRAQ makes this easier for you, and the debtor. Now isn’t that great? To successfully increase collection rates, we have compiled a few of the best practices for B2B debt collection that will help you to succeed long-term.
#1 Prioritise Ethical Communication
Building trust is key. We cannot stress enough how maintaining respectful and compliant communication throughout the entire collection cycle is so important. TRAQ software offers pre-designed templates to ensure compliant language and also adherence to regulations like the National Credit Act (NCA). Debtors who lose faith in common illegal activities that will land you in very hot water. We take data security very seriously at TRAQ – and in turn, provide features and benefits to handle business to business debt recovery.
Maintaining a good relationship with your debtors will ultimately lead to better success and in turn, long-term business relationships that last.
#2 Omnichannel Communication Helps You With B2B Debt Collection
Debtors in the modern age prefer more options and flexibility – especially in a tough economic climate. Often this entails a mix of phone calls, emails, and SMSs to improve engagement and convenience. TRAQ’s software expedites seamless omnichannel communication – especially with our personal omnichannel communication approach. This allows you to connect with debtors on their preferred platform and tailor a better strategy individually for more complex challenges.
TRAQ utilises our “Humans First” approach, and by using personalised omnichannel communication leads to better debt collection.
#3 Automation For Faster B2B Debt Collection
B2B debt collection typically involves a high volume of invoices and debtors to go along with them. For centuries businesses have always had cash flow crunch stress due to manually managing tasks such as sending reminders and chasing debtors for overdue payments; Even generating reports is a nightmare, we know! This can be incredibly time-consuming and may lead to delays in collection processes. It impacts your cash flow and bottom line. Our software accelerates payment collection for all businesses and agencies, big or small.
TRAQ automates tedious and time-consuming tasks efficiently so you can focus on what matters most, your business!
#4 Data-Driven Decisions for Complex Cases
Data is your ally when it comes to dealing with B2B debt, it’s a powerful stance to be in and has many advantages. Our debt collection software offers real-time analytics that you can use to predict debtor behaviour in order to develop more effective collection strategies. We provide powerful tools and features like the intelligent decision tree which analyses your debtor data, which then suggests the most effective approaches. This will significantly lead to higher recovery rates. With our powerful legacy features and over 25+ years of industry leading experience, we continually evolve our software with new and powerful software features now assisted by AI, such as AI for predictive modelling. We’re in the same year, right?
Data doesn’t lie. TRAQ equips you to handle difficult situations accurately and precisely. Take advantage of this!
#5 Provide Flexible Repayment Solutions, We’re All Human.
This one shouldn’t be too difficult. Imagine this: You wake up in the morning and before you’ve even started your day, you have been harassed by multiple forms of communication that completely contradict themselves and send you into a frantic panic. Not so nice? Understanding a debtor’s situation is crucial. Give debtors options such as instalments or hardship programs to increase your recovery success. TRAQ’s software integrates with various South African payment gateways that allows debtors to choose their preferred method and expedite the process.
This differentiates you from other companies using illegal debt collection practices and ultimately losing your reputation – or entire business.