Introduction

Subscription-based business models face increased exposure to payment failures due to the recurring nature of payments. When payment retries fail, effective and efficient debt collection becomes crucial. However, debt collection can be messy, frustrating, and time-consuming. Additionally, traditional Inkasso (debt collection) processes often operate offline, leading to unsynchronised data and cumbersome post-collection tasks, such as manually entering information into bookkeeping systems or other platforms.

Debt collection is typically not a common feature of a subscription management solution but it is natively available in circuly as a solution and a feature.

circuly partners with Debtist to offer a seamless debt collection process natively within circuly, helping you save time, reduce internal resources, and prevent lost revenue.

Feature Overview

Before debt collection begins, circuly offers payment retry attempts to ensure that businesses have a chance to recover payments through automatic retries. After retry attempts are exhausted, the failed payment can be handed over for debt collection through circuly’s integration with Debtist.

Debtist offers a two-step approach:

• Pre-Judicial Debt Collection: Debtist’s automated case escalation drives quicker actions to recover payments before any legal intervention is needed.
  
• Judicial Processing: If the payment cannot be recovered through pre-judicial methods, legal action is taken to ensure recovery.
  
  

The native integration with Debtist eliminates the need for checking multiple systems, as all information—including the payment journey and debt collection process—is accessible directly within circuly. This integration ensures streamlined workflows, eliminating data discrepancies and unnecessary manual work.

For more on how circuly handles payment retries before the debt collection process begins, check out our article on how circuly deals with failed payments. 

For a step-by-step guide, follow our Knowledge loop article: Debt Collection & dunning in circuly. 

Follow this guide on the strategies to prevent failed payment and recover unpaid invoices for product subscription business. 

Follow this guide to understand the difference between payment retrial vs. dunning & debt collection for physical product subscriptions. 

Conclusion 

Debt collection is an important next step in handling unpaid invoices and protecting your business’s cash flow. After automated payment retries have been exhausted, circuly’s native integration with Debtist ensures that overdue payments are addressed quickly and efficiently, without the need to juggle multiple systems. By automating the transition from payment failure to debt recovery, circuly helps streamline this process, allowing businesses to focus on growth while safeguarding their revenue.