What’s the best way to contact a debtor?

How do you communicate with them effectively?

If you’re trying to get in contact with a debtor, you’re most likely going to be calling, texting, or emailing them. Here is a quick guide to the advantages and challenges of each method, as well as some communication techniques to keep in mind.

Phone

Advantages

• Immediate Interaction: Phone calls allow for real-time communication, which means you can address problems on the spot.
• Personal Touch: Speaking directly can help build trust, making it easier to negotiate your terms.
• Clarity: Talking on the phone reduces the risk of the debtor misinterpreting.

Challenges

• Unavailability: Debtors may not always be available or willing to take a call.
• Emotional Responses: Direct conversation can sometimes lead to heightened emotions, which can make it harder to find a solution.

Techniques

• Preparation: Before making the call, gather all the information about the debtor’s account you have.
• Active Listening: Pay attention to the debtor’s concerns and financial situation. This shows empathy and helps craft a solution that works for both parties.
• Stay Professional and Patient: Make sure you stay calm and professional, even if the debtor gets upset. Patience and understanding can lead to a more productive conversation.
• Offer Solutions: Be prepared to offer flexible repayment plans or settlements that might make it easier for the debtor to pay you back.

Texting

Advantages

• Convenience: Texting allows for quick communication without requiring you and the debtor to be available at the same time.
• Documentation: Text messages provide a written record of communication you can reference later.
• Less Intrusive: Texting can be less intrusive compared to phone calls, especially if the debtor prefers written communication.

Challenges

• Limited Detail: Text messages might not be suitable for discussing complicated issues or negotiating.
• Misinterpretation: Tone can be harder to convey through text, making it easier for the debtor to misunderstand.

Techniques

• Be Clear and Concise: Text messages should be straightforward and easy to understand. Avoid long messages.
• Use Formal Language: Even though it’s a text message, stay professional. Use proper grammar and avoid slang.
• Follow Up: If a response is not received, follow up with a phone call or email to ensure the message was received.

Email

Advantages

• Detail-Oriented: Emails allow for more detailed explanations than texts, making them suitable for repayment plans and agreements.
• Record Keeping: Emails provide a clear, dated record of communication, which can be referenced later on.
• Flexibility: Debtors can read and respond to emails at their convenience, which can be less stressful than a phone call.

Challenges

• Delayed Responses: Debtors might take longer to respond to emails compared to texts or phone calls.
• Email Overload: Your email might get lost or go unnoticed if the debtor’s inbox is full.

Techniques

• Structured Approach: Use a clear structure with headings and bullet points to make the email easy to read.
• Include Documentation: Attach relevant documents to support your negotiation.
• Professional Tone: Use a formal and respectful tone throughout the email. Avoid using jargon that the debtor might not understand.

Best Practices for All Methods

• Respect Privacy: Make sure communication is always respectful and complies with privacy regulations.
• Be Clear About Terms: Clearly outline agreements and terms of repayment.
• Follow Up: Regardless of the initial method of communication, follow up to ensure that the debtor has received and understood the information.

Having Trouble Collecting B2B Debt?

If you’re running into issues communicating with a debtor, a business debt collection agency like RSD can take the reins! To learn more about how the process works, check out the RSD 90-Day Collection Process. To get started with a claim, call (248) 370-8160 or submit a contact form here.