Collection Tips

Start your collection discussion by demanding immediate payment in full. Don't be in a hurry to make any concessions to a delinquent customer. In addition, collectors should:

• Approach the debt collection process systematically.
• Set specific and measurable goals for yourself and your subordinates.
• Try not to leave voice mail messages. Call back and ask the operator to speak to a "live" person. This works more often than you might think.
• If you must leave a message, keep it simple. Give your name and number at the beginning and the end of the message.
• Ask for a return telephone call the same day.
• If there is an order pending, be sure to share this information. For many accounts payable departments, an order on hold automatically triggers a payment and a return call to the creditor company.
• Don't use your speakerphone on routine collection calls. Doing so is considered rude.
• Don't waste time your time or your customer's time. Get to the point of the call. Discussion of the weather or ball game score can wait.
• Keep personalities out of the collection discussion. Avoid confrontations. Remain calm.
• Pay attention to the customer's replies to your questions and comments.
• Take notes throughout the conversation of key points, comments, and commitments.
• Always review your previous collection notes before making a collection call.
• Follow up promptly on any broken payment commitment - asking why it happened, why you were not notified, and when the payment will be made.
• Shorten the collection cycle by faxing rather than mailing any requested supporting documents - even when there are a large number of documents to send.
• Make certain your collection calls are interactive. If the customer is not communicative, be direct. Ask for their comments and feedback.
• When an account slows payments, contact the trade references originally provided to see if the problem is unique to your accounts receivable.
  

Source: Michael Dennis, author of "Credit and Collection Handbook" available at the NACM Bookstore.