THE ART OF SUCCESSFUL COLLECTING
GETTING YOUR CUSTOMER’S ATTENTION
Successful collecting in today’s business climate remains a challenge to even the most experienced credit professionals. Knowing who your customer is, their credit worthiness prior to the sale, employing close internal collection follow-up efforts, and knowing when to seek outside help are all key ingredients affecting the number of problem accounts and eventual success in collecting.
Many times you know or have a gut feeling about your customer and what will be required to get their attention. Perhaps it is the threat of putting the customer on credit hold, refusing to ship their next order on open account, or placing the account for collection that finally lights the fire within your customer.
Other times it may require using your agency’s name to let them know you are dead serious and intend to pursue the matter further. Depending on the age of the account, condition of your debtor, and how aggressive you want to be, VML offers one of several approaches to meet your needs.
Pre-Collection letters offer a firm but mild approach utilizing one or two letters printed on our letterhead and signed by your assigned collection analyst. Payment and correspondence are directed to you for your handling. If the account remains unpaid, it can then be transferred to Full Service at your direction.
A Final Demand Notice can be sent by our office or yours to notify your customer of a deadline date for payment. We will then follow up with you on that date to determine if the account should be canceled or transferred to Full Service for further collection action.
Full Service involves immediate phone contact and written demand seeking payment in full. This option includes persistent follow up by your assigned collection analyst until full payment is received or until legal action becomes necessary.
It is the age and condition of accounts at the time of placement that have the greatest impact on whether our efforts will be successful. Delaying your decision to involve our office in absence of a plan or commitment from your debtor will ultimately cost you more money than the expense, if any, of using our services.