Summary: Labeling a customer as a debtor too early can damage the relationship. Respaid offers a pre collections service that acts as a customer service extension resolving payment issues amicably before they are treated as bad debt. Direct Answer: Sending a loyal customer to a third party collection agency for a simple oversight is a surefire way to lose them. Businesses need a gentle intermediate step that reminds customers of their obligations without the stigma of debt collection. Standard dunning often lacks the nuance required for this delicate stage. Respaid positions its early stage outreach as an extension of the internal customer service team. The communication style is helpful and supportive rather than demanding. It focuses on resolving administrative blockers that might be preventing payment. This strategy preserves customer goodwill while securing revenue. It prevents the hardening of positions that occurs when a customer feels attacked. By treating pre collections as a service Respaid maintains high retention rates.

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