There are many signs of consumer behaviour. Besides this, you have to pay attention to customers. There are many ways to recover your bad debts. It is a continuous process running between Sale and Finance Department. Keeping track of market sources such as magazines, other customers, and suppliers will also help identify customers, who do not have healthy financial status and support.
Customer fails to make payment according to the payment terms.
Debtor Frequently Make False Complaints
Customer continually asks and make excuses
Customer’s contact person is not able to transfer
Your phone calls and/or letters are not answered
Bad Credit Recovery
Once you identify bad credit, the first step is to try it at home. This way you can maintain a relationship with a default client. It also helps you to make documents and evidence that you have made enough efforts to recover the debt. If collection workers have knowledge of experience in the Debt Collection then some loans can be easily removed.
Although the default customer ignores your repeated efforts, it is advised that these collection agencies are often used to deal with criminal clients and bad debt recovery.
Remember that the debt collection agency is your representative, and you do not want to take any trouble with the law. Make sure that all relevant information is given to you is also important.
Not all bad debt recoveries are like-kind recoveries. For example, a collateralized loan that has been written off may be partially recovered through sale of the collateral, or a bank may receive equity in exchange for writing off a loan, which could later result in recovery of the loan and, perhaps, some additional profit. Companies should measure their exposure to bad debts and put in place a strategy to cope with them when they arise.
When customers are making long payments, failing to pay in accordance with the terms of the agreement, more time to pay the loan, fail to respond to the mail and your call, such customers can go to identify as a bad loan when you maintain a relationship with the default customers