How to Collect Debt & Keep Your Client
Collecting debt is an important company function. It ensures the organization has positive cash flow to pay expenses. Without the necessary cash to meet financial obligations, a business may be forced to close. While collecting debt is necessary, ensuring clients remain loyal and continue to use your goods and services is equally important.
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Instructions
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Determine the amount the client owes. This involves accessing their account for balance due, invoice dates and payment history. With this information, you are informed and better able to discuss the debt with the client.
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Contact the client. Technology has provided a number of different ways to communicate. Cellular phones and e-mail offer alternative ways to discuss debt. Choose the method that will best allow for a beneficial exchange. Oftentimes, using a standard land-line telephone is most effective. But avoid e-mail contact, you don't have to wait for a reply and wonder if the client received your message.
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Remain professional. In all client's dealings, do not allow emotions to comprise professionalism. If a client yells or screams profanities at you, it is important to maintain your calm. Avoid using accusatory language or a distant tone of voice. You want the client to understand the reason for your call while gathering information from him/her. If you feel ill or are having a bad day, it is probably not the best time to get on the phone and speak with clients. Your mood is likely to come across the phone.
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Obtain payment information. Using a professional approach, find out when the client intends to make payment, if they have not done so already. If payment has already been made, apologize for disturbing them with the phone call and wish them a pleasant day. For any pending payment, record the information so it can be accessed at a later time. Computer software can assist with logging collection calls. This is useful for viewing client communication and can assist with future collection activity.
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Provide customer service. Remember that the client is a debtor but also a customer. You want them to buy from your company again. Without sales, a company cannot survive. And without sales to collect on, there is no need for a collections department. At the introduction or conclusion of the collections call, let the client know you appreciate their business. You need to believe this to sound sincere. Developing a friendly business relationship with clients can make collections a less painful experience, not only for the client but also yourself.
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Tips & Warnings
As part of any collections training, make sure to follow rules outlined in the Fair Debt Collection Practices Act. This is the law that governs how companies are able to collect debt from the public.
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