How is a portfolio recovery process carried out?

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In the business world, debt collection is an essential process that seeks to maintain the financial health of a company. In this post, we will guide you through the debt collection process , highlighting its importance and providing practical tips to improve the effectiveness of this process. In addition, we will discuss the usefulness of debt collection management software , such as Moonflow, to streamline and optimize this procedure.

What will you find in this text?


What is the portfolio recovery process?

Why is it important to recover overdue debt?

Tips to improve the recovery of bad debts

Classify the debt by the number of days in arrears

Set the collection status

Define your strategy to contact your portfolio

Develop a collection strategy

Use a collection software

What is the portfolio recovery process?
“ Portfolio recovery ” is defined as the formal procedure for contacting buy usa email database customers and managing the payment of an account for the purchase of a product or service. When a company faces unpaid accounts, it is essential to address this process in an organized and effective manner.

Why is it important to recover overdue debt?
Accounts receivable recovery is crucial to maintaining a company's liquidity. When accounts receivable are not managed properly, the company can face financial problems that affect its ability to operate successfully. In addition, account recovery helps maintain customer relationships and preserve the company's reputation.

2-Automate your collections management

Tips to improve the recovery of bad debts
Here are some practical tips to improve the portfolio recovery process :

1. Classify the debt by the number of days in arrears
Classifying debt by the number of days past due makes it easier to identify current accounts, overdue accounts, and those that are difficult to collect. This categorization allows you to prioritize your recovery efforts and tackle the most critical accounts first.