Collecting Past Due Accounts - Payment Arrangements
by Jim Finucan
Published on this site: November 19th, 2005 - See
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Not everyone can qualify for a loan or has a credit card or
access to cash from family or friends. Some people are on
a fixed income so there will be occasions when you may not
be able to locate any assets and your only recourse will be
to let the debtor make payments to you over a period of time.
But you need to be careful about how you word any payment
plan you set up. Make it very clear to the debtor that the
plan is nothing more than a temporary solution and is subject
to review at any time. Don't send the debtor anything in writing
which commits you to accepting a time payment arrangement.
Make it appear, as though, with this one payment you might
be able to get a 30-day extension on the account. Ask the
debtor if he understands this. Accepting a partial payment can come back to haunt you the next time you
call the debtor. He is "insulted"
"I thought you said we had an arrangement for twenty
bucks a month. Are you jerking me around?"
This is a common comeback. Inform the debtor that, in your
company, all bills are due in full. In fact, they're already
well past due by the time they reach your desk. If you don't
so inform the debtor he may convince himself the entire matter
has been resolved and just put it out of his mind. Don't do
the debtor a disservice by not informing him of this or you
will come across as being dishonest.
15-year collections professional Jim Finucan can
show you how to double the money you collect from your accounts
receivable. Check out his unique collections manual "Past
Due." For more information visit: http://www.tiare.com/pastdue.htm
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