Why Your Debt Collection Strategies are Ineffective

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Debt Collection Strategies are Ineffective

Most SACCOs have glued themselves to outdated processes- better termed as ancient technology- and often justify this situation with the phrase- it is their way of business. Hence their status quo; it is easier to do nothing than embrace change.

Whenever it is time to recover debt, such SACCOs wrap themselves in their old techniques. Their tried-and-true ways to get paid hit dead ends, and the failure irks them to the core. One notable reason -lengthy procedure- delays the entire debt recovery journey.

Obstacles in the Debt Recovery Journey

Reaching Out to Defaulters

Think of the mandatory steps like documentation processes, contact tracing, and physical follow-ups that one may undertake. Each step can take up to days, or weeks, depending on the requirements. In such a scenario, use some of the already available data for collection purposes.

It begins by looking up the personally identifiable information (PII) of debtors online or through other paperwork.

Secondly, they may establish frequent communication with the debtor- who may have forgotten about the loan, have no cash, or even do not plan to repay. In that case, they must be persistent in contacting them.

Sometimes, debt collectors rely on other means to predict loan defaults. Fortunately, humans develop predictable behavioral patterns over time- when analyzed- they can determine who is most likely to default or pay back a debt.

Limited Repayment Channels

Repayment options are another plague in many SACCOs. Usually, people are more likely to repay loans when presented with many convenient transaction options. So, SACCOs should leverage a range of digital payment plans to ensure their younger clients find ease in paying back.

Lack of Clear-cut Debt Recovery Policy

Enshrined in the status quo is a lack of review of policy plans in line with laws governing lending and borrowing. It is possible to do much better, as a Sacco, with new policies, processes, technology, tools, management, data, and information,

The Burden of Outsourcing

Lastly, when every effort proves futile, SACCOs may ask for help; that is when the challenge presents itself. Every service provider has selfish interests, and determining the most efficient debt collection agent is a tedious task. Debt recovery is, in itself, a difficult task, and these endless obstacles listed above double the strain.

What is the Solution?

The only task at hand is to scribble an effective debt collection strategy that will prevent bad debts from ever occurring or, at best, limit their occurrence. As such, the debt recovery strategy is even more urgent since no SACCO can do much alone. The good news is that all these functions can be performed professionally online, without any physical interactions.

With an adequate digital strategy in place, automation of manual tasks is a natural progression. SACCOs can embrace methods that are more reliable in tracking overdue payments.

So, Welcome To TERA COLLECT—A Service In This Era of the ‘Internet Of Things.’

Automated debt recovery is popular among the common masses owing to its speed, convenience, and flexibility, automated intelligence. For example, software solutions get engineered with new-age techniques to help financial institutions collect debts. NLS TECH SOLUTIONS does just the same, but with a different approach—a debt recovery solution.

Benefits of TERA Collect

TERA Collect seamlessly automates, follows, collects, reports, and solves outstanding debts professionally with minimal human effort.

It orchestrates all processes from a central system module and a digital debt management process that is straightforward and secure- taking debt collection to another level.

For these results, there is significant integration with the existing systems that transform traditional debt collection models— a new face of the debt recovery process in the Sacco industry.

This well-organized, effectively-managed, and thoroughly thought-out process makes the recovery cycle seamless and quick, closely oversees financial data to predict any delinquencies.

Here is a list of some surprisingly simple techniques the solution is packed with to increase your collections:

  • Prompts quick alerts
  • Timely reports
  • Integration with the Core banking system, Dialer, and any third-party applications effortlessly.
  • Synchronizes all customer data from the Core banking system or card System
  • Powered with Machine learning models to improve efficiency

Since the Sacco’s population is overwhelmingly huge, if a Sacco adheres to the automation journey, it stands to benefit the most from TERA COLLECT.

And this is just a start!

A Good Debt Recovery Tip to Remember is; to retain the Sacco members while recovering that debt.

What Next?

Find more information on TERA COLLECT our website.

Contact us for any debt recovery automation needs on:


Mobile: +254202632768