The health crisis has highlighted the need for industries to make changes that take the realities of the present into account. Tucker Albin & Associates note that the commercial debt recovery space is no different, as agencies have had to make adaptions where necessary to increase the likelihood of a successful recovery. To provide a more wholistic view of ways that some collectors are implementing practices, Tucker Albin & Associates include a short list of these changes and how they impact debtors.
Tucker Albin notes that the pandemic has highlighted the need for both commercial recovery agencies to utilize context aware messaging when contacting debtors. The reasoning for this is clear, as the COVID-19 crisis has been a catalyst for financial obstacles for businesses and individuals alike. Tucker Albin realizes that this approach works particularly well for debtors that have preserved a good relationship with the entity seeking payment and are amenable to paying. The approach is very similar to the way that Tucker Albin & Associates offer diplomatic debt mediation when possible. Some businesses have been hit quite hard by the pandemic and restrictions made to limit transmission of the virus, and these companies like to know that their feelings are being considered by agencies seeking their past due balances.
Commercial debt recovery agencies are also recognizing the importance of self-service options. With the increase of individuals that are falling behind on their payments, agencies have done a deep dive into consumer behaviors and how they tend to impact the way in which payment methods should be approached. This has led to the implementation of self-service options, especially for small businesses, to facilitate payments in a manner that is less stressful for both parties. Online payment portals that allow for self-service options appeal to consumers’ tendency to prefer handling their payments similarly to how they pay other expense. In some instances, a consumer may prefer to begin processes such as seeking deferral and payment plan adjustments with automated self-service tools rather than discuss them with a representative.
In times where financial difficulties are omnipresent, Tucker Albin acknowledges how flexible options for payment can be a great way to recover debt. Consumers, especially given the current climate, are in constant search of flexibility as it allows them to reconcile payments in a manageable way. Tucker Albin and Associates note that this does not mean that agencies need to be soft on debtors in an effort to ethically collect, instead recognizing that the adaption should be utilized to come to a conclusion that benefits both the debtor and creditor. In their examination of debtor behavior, Tucker Albin and Associates realizes that businesses tend to pay debts that appear more manageable faster. To this point, a conversation to discuss the terms of a flexible repayment option may increase the likelihood of successful debt recovery by making your payments one of those key manageable bills.
As was the case prior to the pandemic, the commercial debt recovery space is diverse and contains a plethora of different methods for approaching collection. As such, the listed adaptions are just a few of the notable changes made by some entities at this time. Tucker Albin and Associates consistently speak to how many debts can be recovered amicably, even in times of financial stress. Agencies in both commercial spaces simply need to evaluate how their methods are working and make changes that take the situations debtors are experiencing into account.
