I recently read Advanced Collection Techniques for Experienced Collectors by Michelle Dunn. This eBook offers tips for experienced business credit and collections professionals including a discussion of what used to work and how things have changed.
Ms. Dunn’s message is very clear – keep the cash flowing by being proactive in credit and collections and understanding how to manage your collection activities.
We have to change how we keep the cash flowing – how to limit credit risk, how we extend credit, payment terms, how we deal with customers, credit screening, etc.
This book is a fantastic resource for any credit and collection professional helping them to understand how to be more effective in business to business credit management. Some of the key points include:
- Benefits of assigning one person to key accounts to build relationships.
- Strategies to get paid faster such as canceling back orders until existing bad debt is paid in full or changing a customer’s credit terms to pre-payment.
- Focusing on communication and keeping communication accurate and frequently with key accounts.
- Kill them with kindness. Send flowers or a simple note thanking them for their business.
- Offer discounts for payment in full now, discounts for early payment, or discuss payment plan options.
- Let customers know that bad debt will be reported to all of the major credit bureaus.
- Learn how to communicate effectively – be confident, be clear, and be helpful.
- Be prepared before the call and have a plan of attack to avoid excuses.
While collection call strategies play a big role in your ability to get paid faster, implementing a cohesive system such as Anytime Collect can help companies better manage the credit and collections process by automating email communications and organizing call queues for collectors so they have everything they need to be effective in their jobs.