Collecting Commercial Debt - Remember the "People" Factor
There is not a company I know that would have gone into business if they knew it would fail. Here's my point, when collecting commercial debt, keep this in mind. If a company has fallen behind on payment, most likely there is a reason that needs to be addressed, a problem that needs to be solved. You're job, to put it simply, is to be the problem solver. You may be dealing with a debtor who is suffering a cash flow problem, or there may be other reasons for not paying. Is there a discrepancy on the bill- an untimely delivery of product or possibly a conflict with the sales person? Be the negotiator; get to the bottom of the reason for non-payment. So many times collectors forget the "people" factor. Every business is dependent on people to make it happen. You already know that business is built on relationships. Wouldn't it seem logical that the same would be true for the business of debt collection? I have been successful at collecting debt for many years. I truly believe the success comes from treating people like people. Some struggle with this concept, and overdue the position of power by making threats, sometimes personal, in attempts to get paid. Bullies may be intimidating to some, but reverse the rolls. If you were the debtor, who would you pay first- the bully, or the one who talks to you like the intelligent business owner you are? Here are some things to consider when collecting commercial debt: o What is the underlying reason for non-payment? o How can you make the debtor feel that you care about the situation? o Hear them out- they need to tell their side of the story. o Always make contact by phone. Never rely on demand letters alone. o When discussing repayment, be fair. You do not want to make unreasonable demand that could potentially cause the debtor to file bankruptcy or close the business all together. Nobody wins!! o Never, never lose your temper- Not only will this give the debtor the wrong impression of your firm, but, you have given him the position of control. o Be firm and confident while maintaining professionalism. Establish a plan for repayment before disconnecting the call. o Finally, as the old adage goes, you'll get more flies with honey than with vinegar. |
