Friday, February 11, 2011

101 Tips Collection

Today's libraries are said to be 95% and 5% the psychology of the muscles. This article is a collection of time tested tips, techniques and ideas that can help you and your organization to raise more money, faster, with less. Much of what is contained in this article can be a common understanding and the kind of things you and your organization is already doing on a daily basis. However, there are bound to be different ideas and action-oriented recommendations that, if implemented, will helpbecomes an even better job on your credit.

I: warning signs of potential credit and collection problems:

1. numerous requests for information about one of your accounts.

2. Customer behavior is often the banks.

3. Client to seek clarification or evidence of more frequent service.

4. Changes in customer payment patterns.

5. partial payments rather than payment in full.

6. Problems in the client's geographic area.

7. Problemssector clients.

II: Warning Signs of its sales force on May Day View:

8. decreased levels of demand.

9. empty shelves in the warehouse or retail.

10. plant operating at less than capacity.

11. the main customers of your customer is a problem.

12. The loss of key personnel.

13. large layoffs or reductions in hours.

14. limited visits in the areas of the plant.

III: The warning signs of potential problems Checks:

15.Consult with numbers to 300.

16. No name or address printed on the checks.

17. Start checks with printed information.

18. Address on the check and identification do not match.

19. No valid photo ID or expired.

IV: Why do I have problems in the collection:

20. Fear of loss of business in the future (not actively in delinquencies for fear of losing future business.)

21. The lack of credit and collection policy or unclearPolitics.

22. The lack of training of collection.

23. The reluctance to use external sources of funding in the beginning of the cycle of crime.

V: Seven reasons to have a formal written credit and collection policy:

24. Clarify who does what.

25. Facilitates training.

26. Support actions.

27. Prevents unauthorized changes.

28. It promotes consistency.

29. Reduce lost time.

30. The responses of 95% of routinequestions.

VI: The development of credit and collection "Skills"

31. Two basic concepts: (1) Time is the most severe deterioration in the collection of an account, and (2) You will never have sufficient resources to collect all their shortcomings.

32. The implementation of a referral program sooner or care to maximize the recovery of internal and external.

33. The first referral programs, as well as collect, identify and isolate without pay oflow pay and treat each accordingly.

34. Accounts 60 days or younger are more than 80% of his pickup.

35. Accounts over 90 days old are generally less than 50% of collection (internally).

36. delinquent accounts of 60 working days, in general, maximize the internal rate of return and recovery. We use a third for those aged 60 to 90 days in arrears as to concentrate on internal accounts easier slow-pay.

37. Develop and use a "Follow-up Program 60 days."

•Concentrate all its internal efforts in the period in which are more profitable.

• Start early offenders - often in contact with them within 60 days.

• Get progressively stronger, as the 60 days pass.

38. The elements used in the 60-day program Pursuit - copies of statements / invoices, letters, sales visits, telephone calls, suspend credit.

39. After 60-90 days are the choices: continue to keep inside with reduced performance, the termination of your account, usesmall claims court, lawyer or full service collection agency-exterior.

VII: Collection points:

40. The easiest way to raise money machines.

41. You can not solve problems or to determine whether there is a payment issue.

42. A communication channel.

43. Notwithstanding the misunderstanding.

44. Collection Letters to maintain dialogue with the debtor.

45. They are cheap.

46. Lays the foundation for its nextaction.

47. It lets you know that the debtor has not forgotten them.

VIII: Other considerations in the letters along with:

48. His account not only placed the debtor.

49. His letter is in competition with professional mailers.

50. Change the look of each email.

51. It is necessary to discourage borrowing by discarding the envelope.

52. You need to encourage the debtor to open the envelope.

53. Increase the likelihood of positivethe results of your letter.

54. The hand of the direction of a white envelope - open it!

55. Add "address correction requested" and "Forward guaranteed delivery" to the envelope.

56. Frameworks to encourage openness. "Personal and Confidential," "Urgent", "Personal," "Confidential," "Do not bend"

57. Want to motivate debtors to pay for calls in their letters:

• "cost savings."

• "Maintaining a good credit history."

• "Standcustomer value. "

• "Avoiding a record of bad debts."

• "Do not place it outside collection agency."

58. Make collection of letters ever stronger.

IX: A collection of telephone calls.

59. The number is more expensive but much more effective.

60. Requests must complement and follow-up letters to what is said in the letters.

61. As two-way communication, calls can identify and resolveproblems.

62. Sell and maintain control over the call collection.

X: Implementation of the collection call:

63. The format of library call:

• Identify the debtor.

• Identify yourself.

• The demand for full payment.

• psychological relief.

• Determine problem or objection.

• Find a solution.

• Close call and get the commitment.

64. Collect calls are threephases:

1. Opening phase.

2. negotiation.

3. The closure phase.

Tactics Opening stage:

65. Verify the identity of the debtor. (I'll call [name] ... this is him / her?)

66. Make sure the address of the debtor.

67. Identify.

68. State debt contract ($ 567.35 You must us ...).

69. Indicate the type of action you want. ("I have to pay full today.")

70. Pause and let the debtorresponse.

Under negotiation tactics-4 passes (in this order):

71. Step one: "I have to pay full today."

72. Step two: "When you can get paid in full?"

73. Third step: "How can you send today?"

74. Step four: "When I can expect payment?"

During closing tactics:

75. Collector summarizes what is happening and when.

76. Payments are always expressed in dollar amounts.

77. Points in time arealways expressed as dates.

78. Debtors must confirm that you understand the following action on your part.

XI: The selection of an outside body:

79. Always use a service full service agency instead of writing letters, etc.

80. Look for agencies that deal with respect to the three major credit reporting agencies.

81. Select an agency that works nationally instead of a "local" or "regional" for debtors will be processed, even if they go outin your area.

82. Use an agency that provides legal services available as an option if a lawsuit is necessary.

XII: Twenty points - especially for medical practices:

83. Carry out pre-register new patients (and credit analysis) by phone or by mail before the first visit. This reduces bottlenecks in the office and gives time for a study of credit.

84. Mesa obtain credit reports on new patients with poor credithistory - to identify and resolve problems before they pay for services rendered.

85. Potential "danger signals" to the new patient registration forms:

• Direction - temporary or a post office alone.

• Telephone - no or unlisted.

• Company address / phone - or nothing at home.

• Employment - none.

• Competition - none, "a friend", "Medical Society", or "yellow pages".

• Marital status - divorced or separated, young singlepeople.

• Age - the very young or very old.

• No insurance coverage.

86. Doctor jump (if known).

87. "What we have bills that are more important than your health?"

88. Value of the collection - 92% to 95% recovery is a good average for most of the group practices.

XIII: Medical Library Special Borrower Call of Appeals:

89. "I would say he has done several thousand dollars in recent months, however,have only received a small payment. "

90. "We have helped in a time of need, and in good faith, expected to be paid within a reasonable time."

91. "So you want to protect your credit so you can feel comfortable if you or your family need to go back."

92. Add a current loan (pay) ... or some other bills as we go for our last few months. "

Know the law ... debt collection, collection agencies Credit ReportingThe offices are highly regulated. complete copy of the Fair Debt Collection Practices (FDCPA), Fair Credit Reporting Act (FCRA) and a sample of HIPAA has approved an agreement for health professionals are available at: [http://www.ncsplus. com / regulations]

This is the credit and collection 101 tips and techniques, if applied effectively, can improve cash flow and result in increased profitability foryour business.

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