How to Handle Bad Debt

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A credit company will run well if many customers believe in using the services of the company. Because the customer is the main partner in running the company.

How to Handle Bad Debt

In my opinion, customers are divided into 2 groups, namely:

  • Current Customers
  • BD (Bad Debt) Customer

Current customers are those who carry out their obligations in accordance with the initial agreement, or in other words current customers are customers who pay their credit installments in accordance with the maturity date. Whereas customers who are BD (Bad Debt) are customers who are not smooth or even bogged down in paying their installments (not according to the initial agreement). DB customers themselves are divided into 2, namely: lightweight BD and heavy BD. Lightweight BD is a customer who experiences late installment payments but is still within reasonable limits, while heavy BD is a customer who has repeatedly not carried out his duties.

As a collection or collection staff, in dealing with BD customers, you must set a specific strategy so that the customer wants and is able to pay the obligation, so the company does not experience losses for the incident. Some solutions for dealing with BD customers include:

  • Visit the Customer Routinely If what you are facing is a mild BD customer, then at least 1 month you go to his house twice until the customer performs his obligation. But if you face BD is heavy, press and go to his house at least once a week, it will make customers become active and serious in trying their obligations. But I emphasize, in handling customers so that your speech style remains polite but still firm (don’t be rude).
  • Search to Get As a collection staff you have a big responsibility in managing customers so that they are able to carry out their obligations, therefore if there are customers who are not in accordance with the agreement, that is your responsibility. If when you visit his house you cannot meet him, then find the information where he is. Search until you find a bright spot, if you have found it, negotiate about the problem.
  • Customers must follow company regulations, not the other way around Rules are made not to be violated, so confirm this to customers. Customers must follow company rules, not customers who manage the company. At the initial agreement, the maturity date is clear, and what are the risks if you experience late payments.
  • Give a warning If the customer does not have a good itikhad to make a payment immediately, then warn the customer (it can be through a letter signed by the company, or also a direct notification). First warning, second warning and last warning.
  • Confiscate Guaranteed Items If you have tried a number of points above but the customer still has not paid, then according to the agreement is to withdraw goods that are collateral or collateral. If the customer pledges the vehicle, the vehicle is confiscated. And if the guarantee used is in the form of a land or house certificate, then you must coordinate with the company and various parties to immediately carry out the confiscation.
  • Take or confiscate Fiduciary Goods Fiduciary goods are collateral for other goods from the main item if the main item is gone. In other words, fiduciary is a guarantee of replacing the main item, for example, as the main guarantee is a motor vehicle, and when you want to do a seizure, but the vehicle is gone, then you have the right to take other goods with the same value as collateral.

The company will assess your performance, if your performance is good and is able to manage and oversee the company’s credit flow well, then the company will definitely give rewards to you. Stay upbeat and don’t give up. Those are some steps in dealing with Bad Debt customers. Hopefully useful for you.

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