Debts, unpaid invoices, payments overdue for several months and years are some common financial problems that nearly all businesses face, small and large.

Here are some Frequently Asked Questions (FAQs) about debt collection and their answers.

When should I take action for the overdue invoices?

• In order to prevent overdue invoices from becoming bad debts, it is best for a company to act as early as possible.
• The sooner you initiate the action, the better are the chances of getting paid.
• Outstanding payments for older invoices are quite difficult to collect.

For example, an outstanding payment that has been overdue for just 40 days is easier to collect compared to a payment that has been overdue for more than 180 days.

Should I call the customer/client directly on my own?

• No, whether you have a small business or a large one, you should always ask someone else to do the debt collections on behalf of you.
• It is best to have a dedicated individual in your team who is only looking after the accounts receivable.
• You can ask someone from the accounts team or the administrative department to call the customer asking for the outstanding payment.

What tips should I follow earlier to avoid debt collection at a later stage?

Here are some of the tips and best practices you can follow to avoid debt collection at a later stage.

• Cross-check the invoice before sending it.
• Enquire about a new customer before selling products or offering services.
• Take references from a new customer before starting any business.
• Enquire about the financial health and reputation of the company that you want to do business with.
• Don't forget to mention the due date on the invoice.
• Always send the invoice immediately after completion of the work or supply of products.

Should I hire a professional B2B debt collection company?

• It doesn't matter which industry your business belongs to, hiring an expert and experienced debt collection company in India is always beneficial.
• An Best invoice collections company in India like Kollecto knows the best practices for debt collections.
• They do debt collection for companies throughout the day and can make debt collection easy and convenient for you too.

What information do I need to share with the debt collection company in India?

To initiate the debt collection process, you need to share some basic details like:

• Name of the customer/client
• Invoice date
• Invoice acknowledge proof
• Proof of dispatched materials / completion of service offered
• Overdue days
• GST number of the business

If you have multiple debtors, it is best to compile all the relevant information in a worksheet and send it to the B2B debt recovery company.