How to mitigate risks in today’s economic landscape
Getting paid in today’s economic environment is proving difficult for businesses but there are things they can do to help themselves. Intrum’s Global Multinational Sales Manager Manuel Poot offers his top tips for effective collections in trying times.
Intrum’s 2023 European Payment Report shows that Europe’s businesses are spending vast amounts of time chasing payments – losing an average of 74 days a year that they could have been using to grow their business. The value of this is significant, costing the European economy €275bn a year.
While this is a widespread issue, there are actions that individual businesses can take to help themselves.
Here are three key strategies to deploy:
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Establish clear and consistent communication channels
In the digital environment, messages and communications come from many different channels and this can be confusing. It’s very important to provide a clear and defined message to your customers so they know what they are getting from you and exactly what they are expected to do to make their payments.
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Be flexible and understanding
You need to have a consistent process in place but also be flexible and understanding towards your customers. The economy is struggling and so they may also be finding things tough. By being understanding of their situation, you can negotiate better payment plans and come to solutions which work for both parties.
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Consider outsourcing debt collection
If your organisation is struggling and you could use some additional capacity or expertise, don’t be afraid to reach out to a third party agency to support you. These agencies specialise in debt collection and may have more resources and expertise in this area. Choose a reputable agency with a proven track record and ensure your partner follows ethical and legal practices.
For more information, watch the full webinar and access the European Payment Report 2023 below.
