Debtor Tracing plays a vital role in collections process.
As the owner or director of a successful business, where you pride yourself on your integrity and ethical approach to your clients, it may surprise you when your first client “forgets” to pay their invoice or worse still, simply disappears having no intention of ever paying you.
Unfortunately these things happen on a daily basis and in most cases the non-payers are simply put down as “gone aways” and the cost to the company is absorbed. This can mean lower profits, higher costs for your other clients and even lower pay for your staff. None of this is good for your business or its reputation.
It may be expected that the cost to discover the whereabouts of these missing clients would be far in excess of what might be recovered. But surprisingly any good tracing agency will only charge where they are successful in finding the absconder. So the risk to the business is minimal and in the long term the amount returned to the business can be much more than simply recovery of the debt.
Not all clients who become classed as missing were actually bad customers. There is a good chance they simply moved address and failed to inform you. Or perhaps you failed to get their correct address and now want to contact them. Think of the money which could be saved by simply knowing that your mailshot is reaching the right person.
Clients which are classed as “gone aways” are no longer clients. Their existence on your database is pointless and they will never be able to do business with you again. But simply knowing their new address keeps them on your radar and who knows what that could lead to.
In addition to these obvious benefits, passing on your client or debtor tracing to a professional is always worthwhile. Tracing people for an amateur is a long and tedious task. Your staff have better things to do with their time and chances are, you will never have the time.
Many business owners may not be aware that if they hold the personal details of people they must ensure it is accurate. If not, they may fall foul of the Data Protection Act. This could be disastrous for your business.
Professionals have access to information which the average person doesn''t even know exists. They can look into databases and cross reference information in a professional, competent way. They are also ethical when it comes to tracing methods. A professional will never leave themselves, or you, vulnerable to prosecution. This is very important for any business.
Keeping track of clients is a huge task and even worse if these clients are not paying their debts. It is often easier simply to write it off and put it down to experience. But this can affect bottom line profits and this is not acceptable when a professional Tracing Agent can take care of it professionally, leaving you to do what you do best: run your business.