This checklist outlines the essential steps in the debt recovery process to ensure that outstanding debts are followed up effectively and efficiently.
Compile a list of all outstanding debts including the debtor's information, amount owed, and due dates.
Examine past payment records and communication history with each debtor to tailor the recovery approach.
Reach out to the debtor via phone or email to remind them of the outstanding debt and request payment.
If there is no response, send a formal reminder letter detailing the debt and including payment instructions.
If the debtor is unable to pay in full, negotiate a payment plan that is manageable for them.
Maintain regular contact with the debtor to ensure adherence to the payment plan or to remind them of upcoming due dates.
If the debtor fails to respond or comply, consider escalating the matter to a collections agency or legal action.
Keep detailed records of all communications and actions taken regarding the debt recovery process for future reference.
Evaluate the success of the debt recovery process to identify areas for improvement and adjust strategies as necessary.