Debt Collection

17 Jan Debt Collection

When economic times get tough a business can struggle to maintain adequate cashflow.

Businesses that do not have adequate invoicing and debt collection systems in place tend to suffer the most.

Of course, despite good collection systems, there are still likely to be occasions where you have to chase debtors. The following 6 easy steps will assist you in fast tracking your collections

  1. Be prepared – be ready to handle excuses, have the facts on hand,  know who you are calling.
  2. Think positively, your mental state will have a strong impact on how you handle the debtor.  An upbeat mood is contagious and you are more likely to get a positive response.
  3. Speak professionally and with authority, tone, pitch and speed have a powerful impact on the listener.   Consider recording your collection call delivery and then listen to yourself and make adjustments where     necessary.
  4. Take control and don’t let go, manage the call so that you control the debtor’s response.   Show respect to the debtor by addressing them by name and validating their comments, ask open-ended questions to try and get them to give away as much information as possible and listen carefully and take notes.
  5. Nail things down, get a commitment!  If you can’t get a commitment for full payment, at least get one for something and make sure you control the timing.  Never hang up the phone without summarising what has been agreed and follow up if what has been agreed is not delivered.
  6. Learn to be flexible, not all customers are the same and each will react differently to your delivery.

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Forsythes Business and Financial Advisors
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