Whether in bricks-and-mortar retail, e-commerce or mail order in general – the problem of customers not paying their bills arises time and again. That is why we offer debt collection for retailers and e-commerce.
Of course, the risk can be reduced by selecting certain payment methods, but it can rarely be completely eliminated. Too often there are scenarios that lead to temporary or permanent non-payment: Be it an oversight, illness, negligence or even fraud. The consequences are lost sales, higher operating expenses and an increased time commitment for the merchant. This is where professional retail debt collection can help.
These payment methods involve risks for the retailer
Purchase on account represents the highest-risk payment method for the merchant. Nevertheless, it is often offered. Why? Because it represents the lowest-risk option for the buyer, and without this option, you as a merchant run the risk of losing the customer. In order not to miss out on sales here, the “On account” payment method is frequently used despite the risk.
But even with the payment methods “direct debit” or “credit card”, merchants are not immune to payment defaults. It is not uncommon for the bank to be unable to process a direct debit due to insufficient funds in the account.
How to protect yourself as a merchant against payment defaults
Effective receivables management is undoubtedly an important part of preventing liquidity losses, yet in practice many online merchants struggle to implement it properly. That’s why we’ve put together some tips for you here to help you strengthen your payment ratio:
- Specify a payment deadline on your invoices by which the customer must pay the invoice on time.
- If no payment is made by this date, you should send the customer a friendly reminder to point out the delay in payment. Often, a reminder is enough to trigger payment.
- If payment is still not made, it is advisable to commission a debt collection service provider such as Eurincasso GmbH. We process your due receivables and take further steps on your behalf within the framework of out-of-court debt collection. Our experience in the area of debt collection for commercial enterprises shows: In most cases, our demand letter already ensures that your invoices are paid quickly.
- If out-of-court debt collection does not lead to success, we will support you by involving our in-house lawyers or your own trusted lawyer. Furthermore, we also offer you the possibility of dubious debt collection / long-term monitoring.
The typical debt collection case in retail
If you look at the statistics of what the typical debt collection case in Austria looks like, you end up exactly in your industry: commerce.
A customer buys from an online store and does not meet his payment. As a rule, the merchant sends two reminders himself, without the debtor responding. After 2 to 3 months, the debt is then handed over to the collection agency. The typical amount of the claim is between 100 and 450 euros.
If this case sounds familiar to you, we can help. Feel free to contact us – together we will define the appropriate service portfolio for your needs!
Realize more invoices with our debt collection for retail companies
We are very familiar with the behavior and psychology of consumers. Based on our many years of experience in debt collection, we find effective solutions to ensure that you, as a retailer, get paid for your services. Simply hand over your outstanding receivables to Eurincasso GmbH and we will increase your liquidity. Fast, transparent and reliable.
We will be happy to advise you on your options and discuss your wishes and ideas with you.