You may have seen this scenario played out countless times , a happy customer just got a loan approved, payable in 5 years. Perfect credit score, great cash flow, low risk customer, to cap it all off, a significant amount or recurring revenue expected from Interest payment.
A few months down the line, things aren’t looking that rosy after payments are defaulted and debts on the rise.If this scenario sounds familiar read on to get the solution to this seemingly endless loop.
Debt Collection Strategy
This is the first step; to have a clear debt collection strategy and ensure the collection teams involved understand their respective roles to execute on it. The strategy aims to maximize both efficiency and effectiveness of the debt collection team.
The firm’s policies on debt collection are then enforced through the use of a collection system and are incorporated in the process workflows.
Debt Collection System
Incorporating the use of technology to automate your debt collection efforts goes a long way in enabling financial institutions to increase their cash flow and focus on more innovative ways to grow and serve their customers.
The key features of the Tera Collect debt collection system below address the challenges firms face in their debt collection efforts.
360 Customer view
To get started , one needs to know your customer really well .Having a 360 degree view of each customer enables the debt collection teams to have an all-round view of the customers details, and aligning all them by their guarantors and payment history. This has an embedded feature; the Customer Promise that helps the debt collection team to record customer payment commitments and hold them accountable to it.
Assigning single point of contact
The Assigning feature gives the debt collection team lead the assurance that each debt officer is assigned to a customer account as the single point of contact. This happens in real-time based on the officer’s setup bucket and profile laid out by the company. This is a brilliant feature as each member of debt collection gets the customer details as a “lead” for them to nurture through to closure.
The Tera Collect System alerts feature manages the communication that goes out to the customer and the assigned debt officer. This has proved to be a gem as it automatically sends reminders to both debt officer and customer ;to the debt officer ,reminders of customers commitments on payment and to the customer to remind them of payment due dates.
The system also generates and sends letters to selected customers based on the given criteria by the debt collection team
Reports & Dashboards
To measure progress and performance of your collection efforts, the reporting module comes in really handy. The reports are further categorized according to team roles.
Additional querying tools provide customized reports on data that is extracted from the multiple data sources, and furnished in the desired format.
The Tera Collect system provides a Dashboard that gives further insights on the business performance at a glance. The Key performance indicators set here are easily monitored as the dashboard provides an aggregated view of the debt collection progress and can be drilled down further to each team member’s progress.
Third Party Integration
This has proved to be a game changer as it integrates to third party entities involved in the process, ranging from legal firms, credit reference firms and external debt collection agencies giving a unified view of the data and aiding in coordination of your collection efforts.