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10 Tips To Help Collect Past Due Accounts

10 Tips to help you collect debt:

PREPARE: Reviewing the paperwork prior to calling is important. If you know the history of the account, the promises kept/broken and payment history you sound better on the phone. Have all records in front of you, ready for reference.

ATTITUDE: Adopt a professional attitude. You have a contract or you delivered goods now money is owed to you and you have a right to expect payment promptly. Never ever let it become personal. Don't yell or raise your voice; and NEVER swear. Don't threaten physical harm; legal action is your recourse.

CONTACT: It is important that you are talking to the decision maker. Do not let any individuals brush you off with "You'll have to talk to the bookkeeper." Identify the person who can cut you a check. If you can not get through after several calls, let the secretary know that you know your calls are being screened. Tell her the purpose of your call and if necessary give a deadline.

CONTROL: Try to always control the conversation. Keep it focused on the debt and the debt only. Do not let the debtor attempt to sidetrack you with personal history, excuses, or other B.S.. Remember, the only objective of your call is to collect the money, or get a commitment to pay. Now is not the time become friends with the debtor or try to win an argument.

FLEXIBLE: Always be prepared to adjust to any situation. Think about the kind of customer you are dealing with and adapt to meet the circumstances. Be prepared to accept a reasonable payment schedule, and a willingness to deal with a customers circumstances.

NOTES: Keep detailed, accurate notes of every contact with the customer. Probe for further information on the customer. Notes of these contacts will help you in subsequent phone calls, and may be invaluable in litigation. Good notes will also help in further credit decisions, or in cases where skip tracing may be needed.

PRODUCTIVE: All call should be brief and to the point. This is a business call, not a social hour. View your efforts on a ratio of time expended to results achieved. A long conversation typically means the customer is stalling you, or trapping you in the buddy syndrome.

PRECISE: Never leave a contact open ended, such as "Well talk next week," or "Ill send what I can." Every contact should result in a commitment to payment. A specific amount, by a specific date, even the check number the customer is using to pay the debt.

TIME: The longer an account is outstanding, the less likely it is that it will be paid. If payment is not arranged or a payment plan is not established within 90 days, place the claim with a collection agency or start legal proceedings.

PLACEMENT: The best collection agencies do not need to pay money to get your information. Just type in "Collection Agency" to any search engine and pick a firm that ranks organically.