Pump Up the A/R – January 2103

PUMP UP THE AR

January 2013

Welcome to 2013 ( 2012 +1 for those suffering from Triskaidekaphobia) !

I know you’re probably all excited, if not a little nervous, to be starting the new year with a new computer and, for Chicago, a new set of customers…but although the entry and documentation may change, the practice of collecting overdue accounts remains the same. So, just in case the extended time off has left your collection tactics a little rusty, I offer you a short review:

• Start out with inquiry: first contact should take the tone of bringing awareness, ensuring no mistakes were made…give the debtor a chance to save face by paying once reminded.
• If an inquiry doesn’t work, initiate demand contact: without any hostility, take a strong position and demand payment…you’re no longer pretending they might just be confused.
• Determine at which point of delinquency the debtor will be unlikely to pay without collection activities…once you initiate collections, it’s unlikely the customer will continue to view you as an adersary…there’s a good chance you will not do further business with them unless this stage is handled carefully.
• Remember to keep your cool…do not lose your temper or get upset.
• Don’t feel guilty about collecting what you’re owed.
• Patience and understanding go a long way…listen.
• Understand the negotiation process, and focus on a win-win situation.
• Be patient…gather all your information & think carefully about possible solutions.
• Be confident…don’t mistake this for rude or cocky…confidence is not arrogance.
• Develop your listening skills…people will often tell you all that you need to know if you ask the right questions and keep quiet long enough.
• Collections are 95% psychology…use it wisely.
• Watch for signs of potential problems, including change in payment pattern, partial payments, order levels shrinking, loss of key staff members, large layoffs or hour reductions, and problems in key industries.
• Most importantly, remember that time is the greatest deteriorating factor on the collectability of an account…pay attention and act quickly.

 

 

Best of luck to all of you….

                                                                                                Dorothy

                                                                                    (Team formerly known as St. Louis)

PUMP UP THE ACCOUNTS RECEIVABLE – February 2012

We all know that collecting money isn’t always easy.  At Times, our job can be frustrating, irriritating, and downright maddening.  We’re in a position where, all too often, we’re lied to, avoided, and sidestepped.  Aside from cold calls and telemarketers, we’re frquently the least popular phone call a company can receive.  And some days, that’s enough to make you not want to pick up that phone at all.  But giving up is not an option and we need to collect the money owed to us, so what do we do?  We try to remember what an important part of the process we play, and we reinvent what can feel like an ordinary, frustrating job and turn it into a special position.  So, in the spirit of helping you to reinvent your job, I offer up a few tips:

• Notes, notes, notes.  Keep your records straight, take thorough notes and update the computer so that any person that speaks to the client knows exactly what’s transpired.
• Check your attitude.  Stay positive, enthusiastic, and never let them see you sweat.
• Tune into what’s going on around you: listen to the sales staff, keep your ears open to industry news and companies affected, and listen for hidden messages when talking to the client.
• Be inventive: try new strategies, new tactics, new approaches.
• Put the other person at ease: be pleasant, convey empathy… an abrasive approach will get you nowhere.
• Use team talk:  Use the words “we” and “together” as much as you can…IE: “we would really like to work together with you to clear up this matter.”
• Encourage interaction: avoid simply invoices and amounts, pressure clients into interaction by asking open questions.
• Use silence.  State your case and then shut up.  Silence is uncomfortable and the customer will likely quickly jump in to fill the space… it’s a great way to them talking.
• Clearly state your plan for follow-up.
• Keep your language positive and avoid criticism.
• Respond promptly to all questions and requests.
• Compliment progress: when a client is doing their best to clear their account, no matter how frustrated you may be with the slow progress, notice the “good.” and thank them for staying true to their word and making their payments.

Keep that money coming in and have a hppy February!!

St Louis.