Experian’s quarterly Business Benchmarking Report released numbers for Q3 showing the percentage of dollars severely delinquent (91+ days past due) has increased by 15.8 percent compared to September 2010. This goes to show why businesses are struggling with their debt collection efforts.
How do you know if you are getting the most out of your collections strategy?
Wouldn’t it be nice if you knew exactly when one of your uncollectable accounts freed up some capital?
In my previous blog, I discussed the traditional use of commercial triggers for portfolio management purposes. However, many businesses are using triggers with their collections teams to get paid sooner.
Commercial triggers offer notifications on balance change decreases, which from a collections standpoint means your delinquent customer is paying other vendors. Why aren’t they paying you? A new inquiry or a new tradeline trigger also indicates that the business is actively establishing new credit relationships which is an indication that they remain credit active.
Additionally, some traditional triggers used for portfolio management can also be used for collections. Score change triggers as well as days beyond terms triggers can track positive payment performance indicating your customer is in a better position to pay you.
So while the business landscape may not be changing anytime soon – this doesn’t mean your collections strategy shouldn’t change either. Work smarter not harder and get paid sooner!