Tag Archives: collection calls
What NOT To Do If You Want A Return Phone Call
It’s tougher than ever to get through to a live voice on the phone. Caller ID and voice mail make it easy for people to screen calls or ignore them in lieu of a more convenient time. And getting a return call? Don’t hold your breath.
For collectors, that challenge is magnified ten-fold.
Communication specialists recommend all kinds of creative strategies to get a phone call returned. Of course, there’s no sure-fire solution and in fact, one idea we heard recently struck us as simply wrong: Leaving a bogus message that states that you’re returning their call.
Put yourself in the customer’s shoes for a minute. You’re extremely busy. You hear that message and assume that, because you can’t remember, you must have placed a call to this person as the message states. You spend the next 5 or 10 minutes racking your brain and flipping through notes trying to remember this person and why you called them.
When you do finally return the call, you realize you’ve been tricked. So not only have you wasted time trying to remember the initial phone call that never happened, now you’re caught off guard in a clear deception.
As the customer, are you going to feel any desire whatsoever to work with this collector?
Absolutely not. In reality, you’re more likely to put that bill at the bottom of the stack out of sheer anger and frustration.
No one ever says to a collector, “Oh! I’m SO glad you called!†By nature, these calls are adversarial. Therefore, collectors must find a way to overcome the negative stereotypes in order to make headway on the debt. Trickery and deception build walls and make the task far more difficult.
Don’t do it. No matter how many messages you have to leave for a delinquent customer, be truthful.
Setting Priorities To Get The Job Done
Most industries are feeling the squeeze. “Downsizing†is the new buzzword that describes what many face: More work with fewer hands to do it. It’s no wonder so many feel overwhelmed at work.
Working efficiently should be part of our work ethic whether you’re a victim of downsizing or not. But if you are in the throws of a smaller work force, learning to make the most of your time is more critical than ever.
For collection professionals, prioritizing is a must with or without an economic squeeze. Given the enormity of the many details collectors manage, it’s important not to become entangled in the minutia at the risk of losing sight of the big picture.
For that reason, an over simplified snapshot is helpful when prioritizing a day or a week’s worth of work.
The critical tasks come first: collections, credit approvals, cash applications. These are the meat and potatoes that affect operations and/or the bottom line.
It comes down to separating the critical tasks from the non-critical ones. If a task doesn’t impact the bottom line, consider it non-critical. That doesn’t mean it doesn’t get done at all. It just isn’t at the top of the list.
If you’re in a position to delegate, do so. Learning this skill can save your neck if your workload is more than one person can reasonably manage. It’s surprising the number of people in management positions who struggle with delegating responsibilities.
Peace of mind comes with delegating to the right person. Once you’ve placed your trust in someone to take over a task or series of tasks, let it go and let them run with it. Make yourself available to them but keep your hands off.
4 Most Common Responses to Your Debt Collection Campaigns
Running an internal debt collection campaign is essential for getting the money back that your company is rightly owed. While it is important to design your debt collection campaign to effectively reach out to clients quickly after an invoice goes unpaid, knowing what to do after your call, email or letter will help drive success.
Here are the top four most common responses businesses receive from their debt collection efforts:
Prompt payment
This is the ideal scenario. Sometimes a missed invoice is a mistake within the accounting department or the result of an employee being on vacation. If the client promptly pays after you reach out to them on a past-due invoice, always verify the following:
- The best point of contact’s name, email address and phone number
- Their preferred mode of contact for invoices (email v. mail)
Acknowledgement, with actionable response
This is the next preferred scenario after you contact a client concerning delinquency. When a client acknowledges that they are late on their payment and confirms a date they can pay their invoice, as a company you should follow-up to confirm:
- Method of payment
- If they have all of the essential information to pay (routing number, company address, etc.)
- Reason for late payment. Gathering as much information as possible for your records is important should the delinquency happen again.
Acknowledgement, but no actionable response
In this scenario, the client is aware that are late on their invoice, but does not confirm or offer a date for payment. Always reach out to the client because he or she could have forgotten to include that information in their communication with you; or they could be waiting on someone within their business to confirm a date of payment. Whatever the case may be, it is your goal to get a date set with the client. The probability of receiving payment drastically increases when you can commit the client to a specific date or payment plan.
No response
If you receive no response from a phone call, email or mailing, there may be several reasons for this.
- You may not be contacting the correct person.
- The client has a cash flow problem and has yet to find a solution. They are simply trying to avoid communication with you.
- The client is unwilling to pay the invoice and is trying to avoid you.
With any delinquent invoice, you should always follow the bad business debt timeline, which features a series of phone calls, letters and emails to engage with the client. You can find the full timeline here: http://c2cresourcesblog.com/c2c-resources-commercial-debt-collection-agency/bad-business-debt-timeline/.
Internal Debt Collection Campaign Tips: What time of day is best to call?
Your customer has not paid after the final past due notice. It is now time to tackle a debt collection call to figure out when you will be receiving your money. While we often discuss best practice phone etiquette and provide sample call scripts, many clients have inquired about the best time of day to call their clients to get the best results.
While there is no specific time or magic solution for calling and reaching a happy client on the other end of the line, there are several best practices you should follow when calling.
Get to know the person you are calling
Not only do you need to know the specific person to call, but you should try to form a relationship with that person. Â If and when the client encounters financial troubles, you will have a deeper insight into their schedule. Keep notes on what business hours the person works, if they only work on certain days and any upcoming vacation time they will be taking. This could all provide helpful insight if you are calling their direct line and continually reaching their voicemail.
Call time can be influenced by business size
If your customer is a very small business, there is a potential that you could be in contact with the business owner instead of an accounts payable employee. If this is the case, try to call concerning collections early in the morning, around 7 a.m. Most business owners get to the office early to take care of business matters before being pulled into meetings. Remember, 7 a.m. is not a firm call time. It is always important to develop a relationship with the person you will be calling and use your judgment on whether a call before work hours is necessary.
First thing in the morning is better than end of the day
Collection calling is probably not the first thing on your to-do list that you want to do. Nevertheless, it is important to call early in the morning to reach people before they become busy with anticipated tasks and meetings. By calling in the morning you are more likely to get a same-day decision on a payment schedule, even if the client needs to contact you back later in the day.
What time of day is most successful for your business’s internal debt collection calls?Â
3 Ways To A Successful Collection Call
Follow these 3 steps for a successful collection call
Debt collecting has its challenges. As the collector, you have your set of hurdles. Your past due customer has his. Both perspectives represent real people dealing with financial stresses – just trying to make the business work.
We rely on one another to follow through when engaging in business. Making collections calls takes a little finesse if we want to maneuver successfully through our challenges to reach a resolution. You want 2 things: To be paid and to retain the customer.
Your main objective in a collection call is of course, to be paid the same day, in full. To get there, put the following three things into action during your call.
1.   Listen intently
The more information you have about the circumstances your customer is facing, the better you’ll be able to help her resolve the debt. Give her the time she needs to explain the situation to her satisfaction. On your end, take notes and repeat the key points back to her. Consider the time this takes as an investment in your business relationship.
2.    Remain calm and professional
Regardless of how frustrating collections can be, most customers truly want to pay you. Their debt is nothing but a monkey on their back that they want gone. Typically, just listening to them talk will tell you who falls into that category. These are the kinds of customers who will respond well to helpful, useful solutions or agreements and are most amenable to your ideas.
But regardless no matter how your customer responds, staying calm and remaining professional is always the best route to take. If things heat up ~ keep your cool. Your calm responses have the potential to defuse an escalating conversation.
3.    React with firm flexibility
When you respond to your client with firm but flexible options, you open to doors to options in tough situations. This can be a relief to both you and your customer, because the fact is, while a same-day resolution is desirable, it’s not always attainable. Your customer may suggest ideas that may not be the most desirable for you. But if you’ll remain flexible and open, you may find solutions you’ve not thought of before. Once you come to a solution, be firm about the follow through.
Are your collection calls yielding results?
C2C Resources: Balanced and Fair in Debt Collections
Most of us have experienced a cash flow problem at one time or another.
If you’ve made more than a few collection calls, you know; it’s the number one reason for non-payment.
Even the most organized and conscientious customers can fall behind due to cash flow problems. The difficulty you face is that you have a business to run, too. How do you remain fair and balanced with good customers who are experiencing a tough time, while also being fair to your own business?
It’s possible to work with a past due customer in ways that are fair to you both. Start by allowing your customer plenty of time to tell you about the problem in as much detail as he/she will offer. Carefully listen and make notes so you can verify claims when you get off the phone. Demonstrate that you understand what’s been said by repeating the problems back to them.
If your customer offers payment solutions you’ve not thought of, remain flexible and open to ideas. If their idea for payment seems fair and reasonable for you both, put it in writing and have him sign it.
There’s always the possibility that your customer may suggest a payment plan that simply isn’t fair to you or your business. Perhaps you find it impractical or unreasonable in some way. In that case, you may find it helpful to further verify claims through other creditors who are also not being paid before you make any decisions about a payment plan. This may help you determine just how flexible you should be and if you truly want to continue doing business with this customer.
UPDATE: We add this strategy …
In your own mind, frame your collection call this way: You are a problem solver, ready to help your customer get this past due invoice off his back. It’s a financial burden! He wants freedom from it! You can help him get there by being ready with your own ideas for ways to solve the debt.
The more you demonstrate your willingness to work with your customer, the more likely you are to retain him even through this tough spot.
Take your in-house debt collection practices further with this powerful C2C Resources Debt Collection Advice.
3 Ways To Make Debt Collection Calls Easier
Calling your customer about a past due invoice can be one of the most challenging aspects of operating a business. It’s not unusual for aged accounts to pile up because business owners are uncomfortable making debt collection calls. There is a way to ease some of your own apprehension though. By doing the following 3 things, you may find the calls just a little easier to make.
1. Write down excuses
Before you pick up the phone, sit down and list out the most common reasons and excuses for non-payment you’ve heard in the past. Once it’s completed, think about your possible responses and write those down next to the excuse. Think about what worked before and what didn’t.
As an example, I’m sure you’ve heard the excuse, “The check is in the mail.†And while you hope that’s the case, you can’t know for sure, so you’ll want to press for a more concrete verification. Consider a response like, “That’s good! May I have the check number, amount and date sent so I can make sure it posts correctly?†A response like that isn’t confrontational and may result in a speedy debt recovery.
Silly as you may feel, consider rehearsing your responses out loud. This will help you think on your feet throughout the conversation.
2. Know the details of the past due account
Have the following information at hand in advance of the collections call. This will help you maintain control of the call.
How much is owed?
What are the terms of the sale?
What did they purchase?
When was the payment due?
Are there numerous open invoices?
What is their payment history with you?
3. Put yourself in a positive state of mind
A positive disposition and friendly tone of voice will help to set a good tone for an uncomfortable collection call. Take a few minutes to think positively and prepare your self for a professional, pleasant and respectful conversation. Set yourself on a slow and steady course, prepared to leave ample time for listening to your customer’s point of view without interruption.
Half the battle of making a successful debt collection call is the preparation you do before hand. Feeling like you have all your bases covered before you begin the conversation will set you more at ease and help you stay in control.
How about it? How do you prepare for collection calls?
Debt Collections Timeline: How to Stay On Track
Schedule Collection Calls and Notices using a Collections Timeline
A solid in-house collection procedure is one that carefully schedules a series of letters and phone calls that build upon one another. Having a prescribed timeline in which to send collection letters and make phone calls will help you stay organized, fair and reasonable through the course of trying to collect. Sending too few letters or not making enough phone calls may communicate that you don’t take the matter seriously.  But too many can be just as counter productive, being perceived as harassment.
You want to find that sweet spot, sending just the right amount of reminders at the right time. This can lead to successful debt recovery.
The following is a timeline we’ve built based upon a 30-day credit term. Of course, you’ll need to adjust the timeline to match your credit terms.
| Day | |
| 0 | Invoice |
| 35 | Past due reminder letter |
| 45 | Past due follow up letter on smaller accounts or initial past due call on larger accounts. If time permits on smaller accounts, a call is better than a letter at this stage. |
| 55 | Initial past due call or follow up call depending on day 45 action |
| 65 | Termination of credit letter or choose one of the 60 day demand letters |
| 80 | Final Collection call |
| 90 | Final Demand Letter |
Follow-up is a critical component to a successful collections timeline. If your client makes a promise, follow-up with a phone call if they don’t keep that promise. If you end up sending a Final Demand notice, stay true to the actions you state in it. If your letter states that you’re turning the debt over to a 3rd party collection agency, then do it.
C2C Resources helps clients with pre-formatted collection letters and call scripts through a web based recordkeeping and management software called Profit Maximizer.