Credit is valuable in business because it separates the pleasure of purchase from the pain of payment. Therefore, if you provide this option to your customers, you will increase your total sales. Consequently, you will build more revenue than you would if credit was not available to your clients. On the other hand, customers can fail to pay for the procured goods and services in time. The accumulated debt can translate into cash flow problems for your business. If you are experiencing problems with debt collection, consider using these simple guidelines when making your calls.
Know the Case Details
You should be aware the details of the case before calling a delinquent customer. If you make contact without understanding the particular circumstances of the transaction, you will allow the debtor to take control of the conversation. Consequently, a productive discussion will be impossible. You should print out copies of crucial financial documents such as the transaction contract, invoices, receipts and other similar forms of information.
If you have the data at hand, you will be able to speak personally and professionally. Also, you will have actionable knowledge which you can use to handle the common excuses which are used to end debt collection calls. For example, the debtor might give a general reason such as being uncertain of the transaction. With the details, you can provide verbal information and offer to fax or email the invoice and other relevant documents immediately.
Avoid Making Assumptions
When you start handling debt collection calls, you will find that people and corporations are not exactly trustworthy and straightforward. Therefore, you might become quickly jaded and cynical when talking to customers. In some cases, the debt might already be paid, and the error could be clerical. If you speak under assumptions, you will alienate the client and compromise the potential future business. Watch your tone and words, and listen to the customer before making demands.
Provide Payment Options
Customers will often complain about cash flow problems and cite the issue as the cause of their debts. You should be prepared for this excuse. It is advisable to develop some payment options which you can offer to the client. When you present a reasonable plan for payment of the outstanding debt, then the customer can no longer claim that cash flow is the issue. Remember that the ultimate goal of your collection is to ensure the client pays.
Finally, you should document the discussion, including the client comments, in case of a future dispute on the case.Share
5 September 2017
I love watching legal dramas from all different countries. I often call up my friend who is a lawyer to ask her about whether the cases I have seen on the latest drama are realistic or if they wouldn't happen that way in Australia. It's so interesting to me to see the changes that they make to make the stories flow more convincingly as well as the differences between the law in Australian compared to other countries. This blog is for other fans of legal dramas like me and has some tips on the best places to get real legal advice (hint, it's not on the TV!).