6 tips to improve your negoation process

Debt collection is not an easy process. There are tons of complications that a collection agency like Cedar financial and the creditor has to face. One such complication is the inability of the debtor to pay the whole. What can you do in such a situation?

Writing the debt off completely will hurt your business and cash flow. So what can you do? Well, there is one thing that a collector or a creditor can do and that is negotiation. The command is always in the hands of the creditor, even if they have hired a collection agency. A collector cannot negotiate without the say-so of the creditor.

But the question here is, Is negotiation the right choice? Well, according to me it is. When you negotiate for partial payment or a payment plan, you are getting some of the money that a debtor owes you. If you don’t, you might end up losing all the money and lose more if you go for lawsuits and all.

Thus, negotiation is a great option. But only the best negotiator can do this successfully. Here are some tips that can help you negotiate like a pro.

Reminding about the debt is a good start

Starting off the negotiation the right way is important. Thus, make sure you start by reminding the debtor about the details of the debt. Once in a while, you come across a debtor who may have forgotten about the debtor, or is now in better financial health to pay off. When you remind such delinquents about the debt, you get your payment without negotiating a deal.

Know the facts and do the research

Negotiation is an art which you need to back by facts and research. So, make sure you have all the details about the debt- the amount, the last day to pay, and so on.

Also, research your debtor so that you know their financial habits, and also where you can find them, and so on.

Be polite, calm, and professional

The aim of negotiating with your debtor is one- to recover as much amount as you can from them. The best way to do that is to stay calm and professional while talking to them. Be polite, and don’t threaten them or get aggressive when they deny talking.

Be persistent and tell them professionally the consequences of their denial to talk about negotiation. Most debtors will cooperate because negotiation helps them too.

Clarity

Be clear with your message. Let them know that you are hoping to reach a negotiation which is good for both parties. Also, have a figure in mind at the time of starting the negotiation process.

Counter-offers

Once you make your offer, wait patiently for the debtor to make a counter-offer. A debtor won’t agree to your price, so you have to find a middle ground.

Counter-offer from your side

Whatever the offer the debtor has made, don’t agree to it immediately. Take some time to analyze whether it works for your creditor or not. Once you confirm the counter-offer, get it in writing, and all parties should sign it.

Most reputable companies train their debtor to negotiate. Browse here to know how it is to work in the best collection agency in the world.