Nowadays, chasing debtors is different from in the old times, when creditors need to resort to harsh ways of collecting a debt. Debt collection can be challenging, especially if manual tasks are involved. It’s good that modern technology makes the debt collection and recovery process more streamlined and easier than before. One may already know how to go about this process when dealing with the consumer market. But, how can you collect a debt from other companies or the business market?
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Business-to-business (B2B) professionals can use the alternative data solutions below to improve workflows and increase the return of investment (ROI).
1. Adopt Skip Tracing Software
Data is crucial in debt collection efforts, and tracking people’s whereabout can be difficult if you don’t have the right tools. You can use skip tracing software to track your debtors down and collect what they owe.
Here are the good reasons why you should use skip tracing software in B2B debt collection:
- Quickly Locate B2B Debtors: Use a skip tracing tool to locate B2B debtors, giving accurate data when attempting to search using business names, phone numbers, business addresses, or associated individual names (managers and business owners) and aliases.
- No Need to Conduct Manual Search: Avoid the time-consuming manual search by calling and assigning people to verify different companies’ information. With a skip tracing software program, you can automate the process and get accurate information, so you can contact your B2B debtors and collect.
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2. Use Account Segmentation Software
Whether you’ve agreed with invoice factoring or lend cash to an investor for a promising business venture, account segmentation is crucial in the debt collection and recovery process. Save time and effort using a reliable account segmentation software program.
It’s crucial to sort out potential debtors who will likely pay you using an audience segmentation software program to organize your work and increase collectability. Prioritize your debt collection efforts by assessing the following:
- Public record
- Positive and negative ACH payments
- Alternative credit histories
- Online consumer transactions
- Demographic data
3. Take Advantage of The Asset Identification Tool
Your B2B debtors may have valuable assets you can chase to recover the money they owe you. These assets may include cash savings, new employment, and properties.
Increase the likelihood of debt recovery by identifying your debtor’s assets using an asset identification tool, which includes the following features and benefits:
- Bank and Debtor Locator: Using a bank and debtor locator, you can generate a report, pull bank and traditional credit bureau data, and identify inquiries. You’ll be able to find, verify and predict a business’s bank account performance.
- Employment Locator: It’s used to verify an individual’s places of employment.
- Property Reporting Tool: Determine the property owned by an individual or one recently sold using a property reporting tool. Retrieve available property records of a business owner to increase the likelihood of debt recovery.
4. Use A Data Monitoring Tool
Track business associates using a data monitoring software program, automating your search from millions of data records in real-time. Using a data monitoring tool, you can check profile changes such as updates on the business address, email addresses, contact information, account numbers, bankruptcy filings, liens, and judgments.
A data monitoring tool is used to prevent skips, loan defaults, and returned mail, tracking changes to a B2B client’s bankruptcy status or address.
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Use multiple filters in different ways such as:
- Monitoring flags accounts real-time in your B2B client base when changes are made.
- Per request batch processing across your entire B2B client base.
- Verification on an individual client on a per-request basis.
How to Choose the Right Debt Collection Solution
Debt collection can be difficult during uncertain times. So, you need modern tools to help you. Choose the right alternative debt collection and recovery solution by checking the reviews of the tool and the software developer’s reputation. Check these helpful tips when choosing the best alternative debt collection and recovery software for you:
- Ask A Free Trial: A good software provider will be happy to allow you to try their tool in a limited period.
- Check Great Features: Know the debt collection tool’s features and the associated benefits and find out if they’re suitable for your B2B business.
- Check Company Reviews: Know what their previous and current clients are saying about the software solution and how they helped them increase their collection.
The different alternative debt collection and recovery solutions include skip tracing software, audience segmentation software program, asset identification tool, and data monitoring tool. Asset identification software has built-in bank and debtor locator, employment reporting, and property reporting tools. By using these tools, you can increase your collection and run a more successful business.