Summer often brings a lighter mood – sunshine, barbeques, children playing in the pool, ice-cream!! For those dealing with bad debts, it can be a time of frustration, but do not despair! Whilst there is no magician trickery that we, or any other debt recovery agency, can provide, there are some strategic tweaks that can help you maximise debt collection during the summer months.

Understanding the Summer Slump

People tend to be less focused on financial matters during the summer months due to them being more likely to engage in outdoor activities and socialise with those they care about. This can lead to a decrease in responsiveness to any incoming collection attempts. This does not mean that it is impossible!

Let us guide you through some of the best strategies of success for the collection of bad debts during the summer season:

Adjust Your Communication

 Consider shifting your communication methods. Do you tend to focus on email communication? Try calling them. Attempted phoning them several times? Drop them an SMS instead. Still no response? Post a letter. There are only a handful of ways that you can communicate with customers, so you need to ensure that you are using them strategically, with purpose.

It goes without saying that you should be mindful of respectful hours, and which channels of communication you have permission to use. However you should use whichever methods you lawfully have, to the best that you can. Change your strategy and see if your contact success rate increases.

Keep Up With The Times

Technology is constantly changing and evolving, and you need to make sure that you are moving with the times. Everyone likes convenience, the easier it is to make payment the more likely your customer will make payment. When payment can be made in just a few clicks, there is little excuse for non-payment, so it could be worth utilising online payment options, or even mobile payment options such as Apple Pay or Google Pay to make paying just that little be simpler.

You could even opt for automated reminders through push notifications on mobile phones, or other forms of automated communications such as emails. With this, it uses less of your time, and keeps your customer informed of upcoming due payments.

Maintain a Positive Approach

Summer is a time for optimism. Being as positive as you can in all of your communications allows you to maintain customer relationships, with the hope of repeat business. Focus on solutions, rather than elongating the issues, this can lead to more productive conversations, and a higher chance of your collections be successful.

Implement Proactive Measures

Early Intervention

• The sooner that bad debts are addressed, the easier they are to collect. Don’t wait for the summer slowdown to begin your collection efforts!

Review Payment Plans

• Do you have customers on repayment plans? Reconcile these and contact your customers to see if there have been changes to their situation which may allow them to increase payments, or the frequency of payments. Work with your customers as opposed to against them.

By implementing these tips, you can transform the summer slowdown into a season of increased debt recovery success. Remember a positive approach, strategic communication, and understanding debtor behaviour are key to maximising your results.

By implementing these tips, you can transform the summer slowdown into a season of increased debt recovery success. Remember a positive approach, strategic communication, and understanding debtor behaviour are key to maximising your results.

Contact Scott & Mears Today!

Disclaimer: The information provided in this article represents the opinions and insights of Scott & Mears. It is intended for informational purposes only and should not be considered as professional financial or legal advice. Business owners and individuals seeking financial guidance should consult with qualified professionals to address their specific financial needs and circumstances. Scott & Mears disclaims any liability for decisions made based on the content of this article.

Published: 01/07/24