| |
|
|
How to Double Your Debt Collections
by Jim Finucan
Published on this site: October 18th, 2005 - See
more articles from this month
Believe it or not, the success of your attempt to collect
a debt is usually decided right at the beginning of your phone
call – with the very first thing you say after the other
party says hello. Knowing exactly what you are going to say
– and handling the call in an organized, professional
manner is the foundation upon which collections are made or
lost. A professionally executed collections call has four
parts:
- Part One is The Open – how you identify yourself,
your company and the problem. And, how you place that problem
before the debtor. Don't ask him when he's going to get
around to paying you, or why he is putting you off. If you
do you'll be at a disadvantage right off the bat. Instead,
put the debtor in the position of having to explain himself.
Say something like "What are your intentions toward
this bill?"
- Part Two: The Facts. If the debtor doesn't agree
to pay the bill early on, move into the next part of the
call: asking questions about his situation. It's important
to make a smooth transition here because you don't want
to alarm the debtor. Say something like: "Let me just
fill out an extension form for you." Then you can start
asking about his job, whether his wife is employed, any
outstanding loans he may have, credit cards, etc.
- Part Three: The Dun – Once your questioning
has given you the information you need you can show the
debtor a way in which he or she can pay the debt. You now
know, for instance, that he can afford to put it on his
MasterCard, or that she could qualify for a bank loan. Now
you're in position to make your demand for payment (the
dun).
- Part Four: The Close. Whether the debtor has agreed
to pay or not, there is also a specific way you should close
the call. And I don't mean "Gee, thanks. Have a nice
day!" or "You've got your nerve!" Use an
open-ended question designed to put the debtor on the spot;
something like "Do I have your word on that?"
If he has refused to pay or continues to dodge the issue
remind him of how serious the situation is. Make it clear
that the problem must be resolved. Be professional. Don't
insult him. Save any threats of legal action until you've
contacted the debtor several times without success and see
no other option. Never threaten legal action unless you
fully intend to follow through, otherwise you could be accused
of harassment.
Collection calls are sometimes a necessary part of the billing
process. Making the effort to learn and use as many collection
techniques as possible will bring you better results and greatly
improve the health of your bottom line.
Jim Finucan has put 12 years of experience as
a "top gun" collections pro into his book "Past
Due – A Debt Collections Manual." For more information
about the book please visit: http://www.tiare.com/pastdue.htm
|
| |
|
|
