Documentation within the system is extremely important, as it allows a colleague, collections agency or legal representative to pursue the case in future. Make sure your notes are stored on your customer’s file. What to do after making a collections call Documentation Follow-up your call immediately with an email that summarises the main points discussed and any agreed steps. Make notes throughout your call and summarise the key actions at the end of the call to confirm that both you and your customer understand and agree.Withholding supply of current and future goods or services.Charging interest on every day spent overdue.If your customer has a history of late payments or refuses to pay what they owe it can help to tell them the next steps you are considering to take.A warm and strong relationship moving forward may also be more valuable to your business than one that ended over a misunderstanding or a dispute that could have been amicably solved Remember there may be many reasons your customer has not paid and some of them may be the fault of your business. Get straight to the point and be clear and open about your wishes.Be polite and upbeat, give the call a personal touch but remain focused, firm and assertive.Past experiences with reminder notices and collection calls, including any previous reasons for late paymentsĬall your contact’s direct line or ask for them by name:.Name and contact details of who to call.Will they make excuses, or will they want to work with you to resolve the issue? Are they bigger than your company and used to taking advantage of smaller businesses? It can be helpful to work out what common excuses are and how you wish to respond to them.Ĭreate a customer file with information that includes: Does your customer’s accounts department need additional information before they can process your invoice?Ĭonsider the different ways your customer could respond to your call.Was it addressed to the correct person or department?.Did the invoice include everything it should have?.Your customer may have been withholding payment because there was something wrong with your invoice. Perhaps your customer is in dispute over the level or quality of the goods or services, or maybe your sales team has made a promise concerning payment terms that you were unaware of.Ĭheck if there’s a problem that’s prevented payment. For example, find out if the reason for the debt lies with your business. Preparationīefore making a collection call, take some time to look into the background of the debt. If you are not able to give your customer extra time, perhaps you could work with a payment plan that means you receive part of your payment upfront with the remainder spread over a series of instalments. For example, you may want to achieve payment in full, but you may be able to compromise on the payment date and give your customer extra time to pay. When creating targets, it is a good idea to establish what you hope to achieve and what you can compromise on. Should one of your finance team call your customer’s finance department? Or would it be more personal – and possibly more productive – if the customer’s account manager calls their contact directly? Does the person tasked with making the call feel equipped to do so? Consider how to best support them through training, provision of information or even delegation to a colleague. Think about your business structure and how relationships are formed with your customers. Not every employee is suited to make an invoice-chasing telephone call. Areas to consider before calling a customer in arrears Who should call the customer? However, this is exactly the reason why thorough preparation and a certain measure of flexibility will considerably increase your chances of success. Every debtor is different and what leads to a positive outcome in one case may fail in the next. There is no one single way to make successful telephone collection calls. Perhaps more importantly, you will also preserve your working relationship with your customer and future opportunities for growth. If this is the case and you are able to support it, you will be save yourself the trouble and costs involved with more aggressive collection tactics such as legal proceedings. Perhaps your customer just needs a few more days to sort out their cash flow before they settle your invoice. For example, businesses at every stage of the supply chain have been impacted by the coronavirus. However a simple, informal, phone call can often resolve issues quickly and painlessly.Ĭreating a direct connection with your customer by talking to them can also be vital during times of economic uncertainty, such as during the COVID-19 pandemic.
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