The main problem when collecting debts from customers is the difficulty in communicating effectively and recovering outstanding payments in a timely manner. This problem can arise for several reasons, such as lack of contact with the customer, lack of resources to efficiently manage outstanding debts, or inability to adequately track the progress of collection attempts.
Digital technologies can help overcome these challenges in several ways:
- Process automation: Digital tools can automate many aspects of the debt collection process, from sending payment reminders to generating reports and tracking activities. This reduces manual workload and allows for more efficient management of outstanding debts.
- Communication omnichannel: Digital technologies enable businesses to communicate with customers through a variety of channels, including email, text messages, social media, and instant messaging apps like WhatsApp. This increases the chances of reaching customers at the right time and place, thereby increasing the chances of recovering outstanding debts.
Debt recovery: what can be done?
Microcredit companies can employ several strategies to recover debts. Let's look at some of the common strategies:
- Payment reminders and notifications: Sending reminders and payment notifications to borrowers before the payment due date can help keep the debt top of mind for the borrower and encourage timely payment.
- Negotiating payment plansOffering flexible repayment options, such as staggered repayment plans or grace periods, can help borrowers facing temporary financial hardship meet their obligations.
- Direct contact with borrowers: Establishing direct communication with borrowers who have defaulted on payments can help you understand their individual circumstances and find customized solutions to resolve the debt.
- Use of collection agents: Hiring debt collection agents or specialized collection companies to actively pursue debt recovery can be an effective strategy, especially in cases of persistent noncompliance.
- Legal Resources: In cases of serious non-compliance, companies may resort to legal remedies, such as lawsuits, to recover outstanding debts. This is not always the best route, as it can be costly and time-consuming; sometimes, pursuing the debtor is more expensive than the debt itself.
- Debt restructuring: In some cases, restructuring debt through refinancing or consolidation can help borrowers manage their payments more effectively and avoid default.
- Sale of bad debtsSome companies choose to sell their bad debts to collection agencies or investors at a reduced price, thus transferring the risk of recovery to specialized third parties.
Debt recovery: a solution
If your company or organization needs collect a debt, it is necessary to contact the client to let them know about their condition and, in some cases, offer payment methods or negotiate discounts. When the company stops being small and becomes medium or large, The number of clients with debts is increasing and it is difficult to carry out personalized follow-up. In the past, phone calls were made or home visits were made. Today, with the help of technology, there are more agile and effective ways.
Collections typically need a way to communicate with customers who meet certain debt conditions, either en masse or individually. This is where Simpletech's solution comes in: through WittySend, are sent HSM (pre-approved messages via WhatsApp) for debt cases, whose answers are received in a specific tray of WittyAgent managed by the collections sector.
The solution also allows that once the person enters the bot, if the system detects that they are a certain number of days late, they are directed to the collections tray.
Using WhatsApp for debt recovery
In today's digital age, communication between businesses and customers is undergoing a significant transformation, and WhatsApp has become an increasingly popular tool to facilitate this interaction. There are several reasons why businesses are choosing to use WhatsApp. WhatsApp Business as a primary communication platform with its customers.
First of all, WhatsApp is an instant messaging application widely used around the world, with a user base exceeding billions. This means that many people are already familiar with the interface and comfortable using it, making it easier for customers to adopt it.
In addition, WhatsApp offers direct and personalized communication that is tailored to consumer preferences. Instead of relying on emails or phone calls, which can be seen as intrusive or impersonal, WhatsApp allows businesses to connect with their customers in a more informal and accessible way. WhatsApp messages are delivered instantly and allow for real-time, two-way conversation, making it easy to quickly resolve queries or issues.
When it comes to debt recovery, WhatsApp is a recommended way to establish contact with the client through what we call templates. In case you haven't heard of them, “HSM” (Highly Structured Message) is, in its translation: “Highly Structured Message”. It is about a template that is enabled by WhatsApp so that companies can proactively start a conversation. They are made up of static phrases and dynamic fields, where you can enter specific data about each client or their interactions. In this way, your organization can use WhatsApp for business to send payment reminders to your clients. They can send their payment receipts through the same channel and settle their debt in a quick and accessible way.
