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.