Two Keys that Make Debt Collection Easier: Preparation and Negotiation
One of the most important problems debt collection is overdue receivables. This situation, negatively impacts firm’s cash-flow, as well as disrupting their relationship with their client. Despite acknowledging the issue, it can still be tough to collect the overdue amount from the customer. Most of the time, it is because people feel reluctant to ask for money. So, how can one ease the process of money collection in Turkey? As Turkey’s Leading Debt Collection Agency ARS Consultancy we have two keys; preparation and negotiation
Acknowledging the Importance of Cash-Flow
The first step that is needed to be taken during money collection in Turkey, is to understand the importance of cash-flow. And is to understand how receivables management can contribute to the further growth of your business. Due to this, one should never feel reluctant to ask for their overdue receivables in Turkey. Yet, approaching a client and just asking them does not always provide results.
Preparation – Every Detail is Important for Debt Collection
Before contacting your customer for your receivables in Turkey, it is of utmost importance to make sure about these items. Firstly you should know all the details regarding the overdue amount. Second you should know the information is reliable. If your customer realizes you do not know certain critical details, they can take advantage of it and control the debt Collection process. For critical details we can give these examples: The Debt Amount, Age of the Debt and/or the Exact Reason for Debt. To thoroughly prepare, we advise asking the WH Questions before contacting Turkish Debtors;
- Who is the debtor? (For how long you have been doing business? How has been their payment habits thus far?)
- What is the Debt Amount? (Always mention the exact debt amount, instead of approximate calculations)
- Where is the Debtor Company? (Are you in the same country, or city?)
- When? (How late is the payment? What was your agreement and maturity date?)
- Why do you think the payment is late? (Do you think the debtor has a rightful objection or reason for the delay?)
- How should you approach the customer? (Considering your past business encounters, you should either be firm or more constructive)
Once you can answer all these questions by yourself, you can also mention them to the debtor during the debt collection process and ensure the negotiation process benefits you, instead of them.
Negotiation – Dialogue is Everything for Debt Collection
Your approach towards debt collection in Turkey will determine whether or not you can successfully recover your Receivables in Turkey. How do you know how to approach the Debtor? By preparing. How do you implement your preparation into debt collection? Through negotiation. Now that you know the details regarding the debt, and your customer’s habits, you can contact them accordingly to ensure they make their payment as soon as possible. Yet, only contacting them and providing them with the information is not enough. During negotiation, you should also;
- Pay attention to details: how do they respond, what is their attitude towards the Overdue Receivable?
- Don’t wait, just ask: if you do not ask or give them a deadline for payment, they most likely will not either.
- Offer and Commitment: Provide them with an offer, and clearly state you expect full commitment.
- Abide by your principles: The only important factor should not be to collect the Overdue Receivables in Turkey, but also preserving your brand image and relationship with the customer throughout the Debt Collection Process.
- Close with confirmation: It is always beneficial to end a conversation with confirmation. An e-mail regarding your agreement will surely benefit you in the long run as well.
It is important to note that although these tips are applicable to every debt collection case, their implementation should not be the same, considering every case is different, and require different, appropriate approaches. Determining the correct approach, and diligently conducting it is not always easy and often time consuming, especially when you are running a business. This being said, you need not worry! As Turkey’s Leading Debt Collection Agency, ARS Consultancy, we are always by your side with our 9-year experience in the International Debt Collection Sector.
ARSinkaso – The Expertise You Deserve
As the leading Debt Collection Agency in Turkey, ARS Consultancy assists you with your Overdue Receivables in Turkey and 155 other countries with expert agents knowledgeable in Preparation, Negotiation, Communication, Local Customs and financial landscapes.
Thanks to our agents and partners in 155 countries all around the globe, we ensure your Debt Case is being worked on with diligence; saving you time and increasing your cash-flow while you focus on your business.
So click the “Get Offer” tab on our website, e-mail us at [email protected] or call us at +90 212 296 91 47. We are one call away from improving your cash-flow!
Onur Saatçıoğlu | International Collection and Risk Management Jr. Specialist