Cannabis Debt Collection Relies On Communication
- October 2, 2019
- Posted by: Peter Moran
- Category: Debt Collection, Tips and Tricks
A variety of techniques, processes and best practices are used for business to business cannabis debt collection. When trying to collect unpaid invoices from your past due customers, communication with the customer is essential.
Letter Of Demand For Payment & Cannabis Collection Calls
Whether cannabis debt collections are handled in-house or through the use of cannabis collection agencies, communications on past due accounts is essential. Most commonly, creditors and debt collection agencies send a letter of demand for payment or collection letters. Making bill collection calls is also a powerful debt collection tool. Although collection calls usually are more time consuming and require more resources, they can often have a greater impact than simply sending debt collection letters.
Using Email for Cannabis Debt Collection
Email has recently grown in popularity and is being used more widely in the cannabis debt collections process. Unfortunately, the Federal Trade Commission (FTC) has not yet updated the Fair Debt Collection Practices Act (FDCPA) to clearly define the rules for using email communication for debt collecting. The FDCPA outlines laws governing third-party collection of debts, specifically with regards to consumer debt collections.
Use What Works For You
The form of communication that works best is not the same for all businesses. You may need to experiment with different communication methods to determine which debt collection method is most effective for your business.
Consistent Cannabis Debt Collecting Communications
Most importantly, the consistency of communications with your past due customers is helpful to make debt collections more effective. As soon as an account becomes past due, you should be communicating with your customer. Past due notices are a simple and cost-effective way to notify your customers of their delinquent account.
Supplementing past due notices or collection letters with a collection call can increase your chances of collection. Cannabis debt collection calls not only stress the seriousness of the matter to your customer, but they can also be used to gather helpful details needed to collect the past due account.
Staying in Touch is the Key
Regardless of the method used, be consistent with your cannabis debt collection communications. A lot can happen between phone calls or collection letters. Don’t miss your opportunity to collect past due accounts by failing to stay in touch with your customer. Especially with debtors who are stalling, the creditor who is most aggressive with their collection efforts is most likely to get paid.