Credit Bureau of Albert Lea
If you are a consumer, the content on this website was produced by a debt collection agency and any information obtained could be used for the collection of a debt. The information contained on this website should not be interpreted as legal advice. If you have questions regarding any interpretation of the law, contact your attorney.
Tips for Collecting Money in Today’s Economy
Most   companies   have   witnessed   first   hand   the   signs   of   a   sluggish   economy. Business   owners   and   managers   will   quickly   take   notice   of   slowing,   late   or negligent    customer    payments.    Late    payments    can    result    in    debt    recovery problems.   Businesses   are   dependant   on   their   cash   flows   but   are   faced   with   a dilemma   -   how   to   collect   money   quickly   without   alienating   the   company's lifeline - their customers?
Have a clearly defined credit policy in place. Review it with each customer - both new and longstanding - and draw attention to the key points. Get current and accurate contact information on the person you are extending credit to. Sometimes a credit report may be necessary or advised before extended credit. Don't ignore overdue bills. Remember that the longer a bill goes past due, the less collectable it becomes. Plan action as soon as it runs 30 days. Re-bill promptly, as soon as the first bill is due. Consider requesting payment in full within 15 days rather than the traditional 30. Pick up the phone and call once a bill is overdue more than a month. A phone call is 10 times more effective than a letter. While this can be awkward for some business owners, it is simple and quite effective. Never apologize when you call or write remember that this is money owed to you. Simply ask the customer to write a check today for the full amount owed. Keep the tone friendly and sincere. There is no reason to be confrontational - even if the customer becomes hostile. Listen to what the customer is saying and be sympathetic. Your customer may also have trouble collecting money from his or her customers. Don't be vague - always ask for the full amount, not just a payment. If the customer cannot comply, insist on an exact amount, a check number, and the exact date when you can expect the partial payment. Never negotiate the amount, just the terms. If your customer will have a problem paying, offer a payment plan as a last resort. Insist that the first payment go in the mail today and be very clear when you expect to receive the entire amount. When all else has failed, seek a reputable collection firm, one that can provide references and has shown longevity in the debt collection field. The best would include in their collection efforts; mail notification, collection calls, credit reporting and a legal department to handle litigation.
Remember,   the   longer   a   bill   goes   unpaid   the   less   likely   that   it   will   be   collected.   We   suggest   and   have   had   the   greatest   success with   accounts   turned   over   to   us   between   90   and   120   days   past   due.   It   may   seem   difficult   to   turn   accounts   over   to   a   collection firm   but   it   does   two   things,   it   shows   past   due   customers   you   are   serious   about   getting   paid   and   it   also   puts   money   collected back to work for you that you would not have.