How to reduce installment recovery delays

Delays are a process problem

Late installments are often blamed on customers. Sometimes that is true. More often, nobody reminded the customer in time, nobody recorded the promise made on the phone or the recovery officer did not know which accounts mattered most.

Start with a clear schedule

At the time of sale, record the advance, the amount, the due dates and any agreed grace period. Give the customer a printed copy. A customer who knows exactly what is due and when is more likely to pay on time.

Daily due lists beat monthly reviews

Recovery works when it is a daily habit. A list of installments due today and overdue by one, three and seven days lets staff act early, while the customer still remembers the commitment.

Record every contact

A note such as "promised payment on Friday" prevents the same call being repeated and gives managers a view of which accounts are truly at risk. It also protects staff from disputes.

Judge risk before the next sale

A customer's payment history is the best predictor of the next sale's risk. Before approving a new installment, check previous behaviour and any overdue balance.

• Number of late payments
• Average days late
• Current outstanding amount
• Guarantor details

Make payment easy

Offer clear ways to pay and issue a receipt every time. Many delays happen simply because paying is inconvenient or because a customer is unsure whether the last payment was recorded.