Cash Collection

Don't waste time in debt collection. The communications need to be precise, with exact arrangements made for settlement. Then act immediately if the promised action is not taken.

Make your telephone debt collection positive. Your voice should be alert and positive, the case stated firmly, the information factual and relevant. Emphasis benefits to be gained by the customer's company; and avoid making threats.

Use the telephone to collect debts - it's an effective communication tool. Make sure you have all the relevant information to hand, and keep records of who you speak to and when.

Good invoicing techniques include providing a 'two set' invoice or 'tear off' remittance advice, and standard sized and brightly coloured paper.

If you are dealing with large companies, it's worth finding out how and when they pay their debts. If it means changing your own system, it's usually worth it to receive payment on time.

Use role-playing to better your credit collection procedure. Try these roles: the manager is a friend, they never got the bill, their spouse handles all bills, they'll pay when they get paid, they're out of work, they'll pay next month, they weren't satisfied with the service, etc.

Regularly update your debtors. Develop a system for recording all your telephone conversations and written communications: this will be worth your time.  If you have many account customers, develop or purchase a purpose built database application.

Setup standard letters, emails, and telephone scripts requesting payment for overdue accounts, so you don't have to re-word something each time.

Make sure your invoices are designed for ease of understanding, clarity of information, and speed of payment.  Pre-emp any questions the payer may raise by including ALL information; and state the exact date for payment, not just '30 days'.

Take the simple (but important) steps of sending your invoices to the right person at the right address for payment. And send it on time. Taking the time to clarify this can save a lot of time later on chasing an outstanding account.