Prioritizing Payments is Critical in Debt Collection

Although we acknowledge the trade as exporting or importing products, it means that a process that has not been collected has not been completed.

The payment behavior of companies plays a critical role in the completion of the trading process.

Especially in deferred payments, the strategies of the creditor companies are determinative against the stereotyped payment behaviors of the debtor companies in order to prevent the payment due after the product or service is provided.

There are steps to be taken in order to change these behaviors and move your company to the forefront in payment prioritization of debtor companies.

So, how are these stereotypical payment behaviors shaped? How does payment prioritization occur in debtor companies?

The answer to these questions will direct the strategy to be applied by the creditor companies.

Let’s handle with the subject individually first. We can consider a pool where there are items such as the rent payment to be made to the landlord, the credit / credit card payment to be paid to the bank, the payment of the electricity bill, the payment of the internet bill and the payment of the debt received from the friend.

What will be the order of the payments we will make here? The criteria taken in prioritizing debt payments are generally to meet the basic requirements, the sanctions we will face if they are not paid, and the situations where deferral is more possible.

In this case, meeting our accommodation needs will be the first priority for us and the rent payment will be an item we will prioritize.

TAKES THE COURT!

The credit / credit card debt to be paid to the bank will be another item to be prioritized due to legal sanctions such as execution / interest application, if not paid.

STOPS THE SERVICE!

Afterwards, we will take one step forward to pay the electricity and internet bills, which are not as basic as accomodation but are necessary today.

COVERS ME!

A loan from a friend, for whom it is more possible to defer, will be at the bottom of this ranking.

By adapting this minor sampling to companies trading in the market, we can create a more major picture.

The criteria considered during the payment prioritization in companies can be summarized as interest and maturity differences to be applied, stopping the ongoing service, damaging the reputation of the company and especially working with a professional receivable management company for debt collection by creditor companies.

The situation is not so different in Turkey. Mankind generally does same things while they are in a debtor position. We are always afraid of to face with legal process.

In order for companies to collect their delayed receivables, they need to create the awareness that the practices specified will be applied to the companies they trade with.

THIS IS MUST TO SURVIVE MY BUSINESS!

Examining these conditions one by one will also give companies an idea of ​​applicability.

Applying maturity difference for delayed payments; This sanction should be clearly stated in the contract signed between the parties in the trade made, and it should be stated that interest will be charged for the delays at the end of the term and the maturity difference will occur.

In the case of delayed payments, stopping the ongoing service is an effective sanction method, especially between parties with continuous trade relationships. In order not to lose the trade volume that will occur in the future, it triggers the debtor company positively in terms of payment prioritization.

In the process of delayed payments, damage to the reputation of debtor companies has great importance, especially for companies working in restricted areas.

Let’s not forget that most of the companies operating in the same sector are doing market research about the companies.

This situation causes the companies that delay their payment to be known in this way and damage their reputation. Thus, it poses a threat to potential trade relationships.

Finally, to work with a professional receivable management company, which can be evaluated in addition to the criteria we have mentioned above; With this strategy, in addition to the sanctions to be imposed by the creditor company, they play an effective role in the change in the payment prioritization of the debtor companies by providing strict monitoring and corporate management by including the professional receivable management company in this process.

ARS Consultancy is the company that you may work with us in Turkey. When you have a debt case in Turkey, you may contact us directly and we will start to work for recovery after the agreement process is over.

Your local partner have qualified and educated team to recovert debts from debtors and they will improve you to the higher in the payment list.

When the specified criteria are applied by the companies to the debtor companies, it will be inevitable for the debtor companies to prioritize these customers in their payment priorities.

In order to reach us and to be provided by our services you may contact us via 0090212 2969147 or our social media accounts.

Emre Col | Director of Foreign Affairs