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When consumers or businesses purchase a product or service, they are entered into a legal agreement to pay or repay the money they owe. Debt collection is when creditors and collectors try to get payment from consumers or businesses.
The debt collection process is a calculated effort made by a business to collect an obligation that has become past due. In typical transactions between two companies, an invoice gets generated, and payment is due within 30 days—unless, by special arrangement, a more generous schedule of fees has been agreed upon.
The debt collection process varies depending on your creditor, but in general, the process is as follows:
Integrating a digital debt collecting solution instead of using a collection agency helps businesses collect payments faster in a secure, cost-effective manner. It also sends automated payment reminders to scale the debt collection process. An effective debt collection communication strategy can reduce operational costs by decreasing the number of inbound calls received by contact center agents related to collections.
A fully compliant digital debt management solution connects all process areas in one complete ecosystem, including collections, recovery, and customer communications. By automating operations, extracting insights with advanced analytics, and offering personalized experiences, debt collecting solutions improve efficiency while increasing revenue and customer satisfaction.
Learn how you can provide an AI and data-driven customer collection experience