Category Archives: AI in Debt Collection

Dealing with the unexpected debt from a 'Good' B2B customer. Your most reliable B2B client - the one who’s never missed a payment in five years - suddenly ghosts an invoice. Your stomach drops. Panic sets in. Do you write it off? Burn the bridge? Not so fast. Before hitting the nuclear button, take a breath. The truth is, unpaid invoices aren’t always about you, they’re often a cry for help from a business in survival mode. Understanding the situation with B2B clients. Finding out the reason why the B2B customer has not settled their invoice(s) will be the basis of how you will deal with the situation. There could be any number of factors why their invoice hasn’t been paid. Make sure you talk with your customer to ascertain the reason behind the slow payments. TRAQ's software facilitates this by centralising all communication and documentation related to each debtor, ensuring that you have a clear and organised record of interactions and agreements. Why’d they go silent? Maybe their CFO quit. Maybe a key client tanked. Or perhaps their industry’s getting squeezed by supply chain chaos. Your first move? Pick up the phone and ask. No robotic emails. No passive-aggressive reminders. Just a real, human conversation. The goal here isn’t to interrogate. That first conversation? It’s make-or-break. Skip the robotic “per our records” email. Pick up the phone and say, “Hey, we noticed Invoice #456 is still open. Everything okay on your end?” Let them talk. TRAQ records all interactions, no matter how minor. That “cash flow hiccup” a client cites in April or the “processing snag” they blame in July might feel like one-off excuses - until you notice they’re stalling payments every time their industry faces a slump. Take a logistics client who mysteriously drags payments during peak shipping seasons: it’s not bad luck; it’s a pattern. TRAQ flags these trends automatically, nudging you to rethink credit terms before the next crisis hits. What's Really Going On? What late payments are Trying to tell you. Proactive detection is key to mitigating bad debt. Watch for subtle changes in payment patterns, such as delayed payments or partial settlements. TRAQ acts as your early-warning system here. You’re not just tracking payments; you’re decoding what they really mean. TRAQ offers intelligent analytics that analyse data and deliver meaningful insights on changes or opportunities, enabling proactive detection of potential issues. Late B2B payments often serve as a measure for the overall health of your customer's business and your own risk management strategies; and, according to SCORE, 82% of small businesses fail due to cash flow problems. A recent survey by Amex found that top concerns by small and medium business owners have been consistent over the last year, with 44% citing pricing and price hikes and 35% citing cash-flow forecasting. It is also a good idea to research the B2B industry your customer is in, and see if there are any current news stories that could be affecting their business. TRAQ’s reporting suite analyses your debtors’ profiles, payment histories, invisible to manual review, giving you the insights you need that you otherwise wouldn’t have. Negotiate solutions that preserve relationships. Approach the situation with empathy, and sentiment analysis while clearly outlining the outstanding debt. Explore negotiation and payment plans, offering flexible options to help the customer regain financial stability. If internal efforts fail, consider involving debt collection services or pursuing legal actions as a last resort. Each step should be carefully considered to balance debt recovery with preserving the customer relationship. Before escalating, rather propose more structured, flexible solutions. TRAQ simplifies this process by supporting diverse payment methods - including card, EFT, EasyPay, and compliant debit orders (DebiCheck) - while automating reminders and tracking agreements. This balances recovery goals with relationship preservation. Use TRAQ to mitigate B2B debt effectively. TRAQ consolidates account management, payment tracking, and client communication into a single platform, replacing reactive firefighting with proactive strategy. Automated workflows monitor payment cycles for anomalies - like a client stretching 30-day terms to 45 days, while customisable reports spotlight sector risks, such as construction firms struggling amid material shortages. Preconfigured reminders maintain consistency, ensuring no overdue account slips through the cracks. TRAQ enhances efficiency and reduces the risk of overlooking overdue payments by automating reminders and generating detailed reports. Automated workflows make sure that every step of the debt recovery process is handled consistently and effectively. Does TRAQ software integrate with existing accounting software? Yes, it does. TRAQ syncs with platforms like Xero, Sage, and QuickBooks - pulling invoice data directly into its system. It means no more manual entry. Your AR aging reports, payment histories, and client accounts update in real time. What payment methods can debtors use? Multiple methods are available to the debtor. Debtors can pay via cash, card, EFT, debit orders (including DebiCheck), or even retail channels like EasyPay. TRAQ supports QR codes and payment links, making it easy for clients to settle invoices without chasing paper trails. Can I customise TRAQ for my industry’s needs? Yes. Set custom payment plans (installments, grace periods), create branded communication templates, and tweak workflows for construction, healthcare, retail, or other sectors. How does TRAQ spot risky accounts before they default? TRAQ software has advanced analytics to track payment history, industry trends, and client behavior (like repeated late payments). If a debtor’s sector hits turbulence or their payment cycle slows, TRAQ flags them in your dashboard. You’ll see the red flags before the debt goes bad. Don't let unexpected debt disrupt your business. Request a demo now and see what TRAQ software can do for you.
Dealing with the unexpected debt from a ‘Good’ B2B customer.

Your most reliable B2B client – the one who’s never missed a payment in five [...]

22
Apr
Faster processing & improved CX for better debt recovery
Faster processing & improved CX for better debt recovery

Here’s the crux of the situation: customers expect a quick and seamless experience when interacting [...]

15
Apr
TRAQ's Pre-delinquency strategies for better collections.
TRAQ’s Pre-delinquency strategies for better collections.

Debt collection delinquency carries high costs for both collection agencies and their customers which, in [...]

08
Apr
Proactively preventing debtor delinquency with real-time data
Proactively preventing debtor delinquency with real-time data

It’s an undeniable fact that successful businesses in South Africa are relying on real-time data [...]

26
Mar
Ethical debt collection - AI and your Customer Experience
Ethical debt collection – AI and your Customer Experience

It’s no secret that AI allows you to balance your collections with a positive customer [...]

12
Mar
How TRAQ software improves your consumer debt management
How TRAQ software improves your consumer debt management

Consumer debt management is a critical aspect of any successful business, especially in South Africa’s [...]

19
Feb
Enterprise SaaS in Debt Collection Software Customisation
Enterprise SaaS in Debt Collection Software & Customisation

At TRAQ, we are taking our traditional software “TRAQ Collect” to the next level by [...]

12
Feb
No two businesses are the same - nurturing strategic partnerships
No two businesses are the same – nurturing strategic partnerships

At TRAQ, we understand that no two businesses are the same, which is why we [...]

05
Feb
Secrets To The Customer-Centric Approach in Debt Collection
Secrets To The Customer-Centric Approach in Debt Collection

The customer-centric approach typically used in today’s economy is often ineffective in debt collection, meaning [...]

27
Aug
TRAQs Top 5 Best Practices for B2B Debt Collection
TRAQ’s Top 5 Best Practices for B2B Debt Collection

  B2B debt collection has its challenges, especially with smaller debts – and we’re here [...]

04
Jul