What is a soft debt collection service?

A soft debt collection process entails the following:
1. Debtors are contacted via sms, personal telephone calls, e-mail and statements mailed to them.
2. Collect payment or make payment arrangements with debtors.
3. Receive proof of payments and reconcile against outstanding debts.
4. If no payment is received within 30 days, the debtor will be informed that they will be handed over for legal action.

Maintaining good customer relationships

It is in interest of all businesses to maintain good customer relationships. However, this could prove difficult when bad debt collections become an unpleasant reality. The Accounts Receivable department can play a major role by keeping this goal in mind when collecting on past due accounts. Whether collections are handled in-house or preferably through a third party collection agency, efforts should be made to retain the customer, if possible.