Some Interesting Facts in Debt Collecting

“The best way to learn facts is by failing” – unknown 

If you are doing your own business debt collecting, you might be surprised to learn the following facts from the inside debt collecting industry.

  • 20% of your clients/customers  make 80% of your debt collections – this is a well known Pareto Principle.
  • As a creditor, SMS text messages are the preferred way of cash collecting.
  • Your business can increase collections by 12+ % by using SMS and e-mail communications with your client/customers. Of course, these methods need be used with care and properly – claims Michelle Dunn – a well known expert in the wide field of debt collections in America.
  • Both, SMS and email messages are perceived as less evasive than a phone call.
  • A simple “Please pay your invoice by” or “Thank you for your business” can increase the percentage of invoices that are paid by more than 5 %.
  • The average American has eight credit cards or loans, and there are over one billion credit check reports issued annually – claims the American consumer Information Centre.
  • According to the same source, 2/3 of the American economy is driven by consumer spending.  Outstanding US consumer credit in 2011 totals $1.7 trillion.
  • Direct Response Marketing campaigns usually produce a very high rate of debt delinquency, which will affect the business, should the business not have a proper credit control system set up prior.

 

One thought on “Some Interesting Facts in Debt Collecting

  1. Truly insightful debt collecting info,bless you! I’m sure your current visitors could quite possibly want even more posts of this nature – maintain the excellent work.

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