How To Make Commercial
Collections Calls
The telephone enables a credit manager to make many contacts in the
shortest period of time. A call permits you to present your case to the
debtor for immediate response.
During the conversation you can determine whether the claim will be paid
in full and when. This is the time to determine reasons for nonpayment.
Advantages in telephoning are the two-way line of communication and the
speed in obtaining a response. For most calls, follow a set pattern:
- Call directly to the person in charge.
- Identify yourself and your company.
- Ask for payment in full at a specific date.
- Suggest a solution once you have determined the real reason for the
bill not being paid.
Three Main Reasons for Nonpayment
The most difficult part of a call is to determine the real reason the
bill has not been paid. There are usually three reasons for nonpayment.
1. Lack of funds or belief that there is a lack of funds.
Most non-payments result from real or imagined lack of funds. You have to
determine which of the two is truly the case. Frequently, businesses
have assets they don’t recognize. Sometimes, they may be short of funds
because too much is tied up in accounts receivable. You can point this
out to them and suggest ways in which they can release some of their
capital and keep their accounts receivable more in line.
2. Disputes.
Disputes can be discussed to determine whether or not they are valid.
The valid claim must be adjusted quickly and fairly. The valid claim
should be exposed and immediate payment should be requested.
3. Refusal To Pay.
If it is a refusal to pay, your next step has been dictated by the
customer/debtor. You must take third-party steps to enforce payment.
Pin down the arrangements agreed upon. Make sure your customer puts them
down in writing while you wait. Remember, your customer has past due
obligations to other creditors, and you are competing for their money.
Be sure they do not send your money to some other creditor. Follow up
with a notice reminder or form letter.
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