Collections are now said to be 95% and 5% psychology of the muscles. This article is a compilation of time-tested tips, techniques and thoughts that can help you and your organization to raise more money, faster, with less. Much of what is contained in this article may be common knowledge and the kind of things you and your organization are already doing every day. However, there are bound to be different ideas and action-oriented suggestions, implement them, whichhelp you do better on your credit.
I: Warning signs of potential credit and collection problems:
1. Numerous applications of your accounts.
2. Frequently changing customer banks.
3. Customer requests for clarification or service tests more frequently.
4. Changes in customer payment patterns.
5. Partial payments in lieu of payment in full.
6. Problems in the geographical area of the client.
7. Problemsclient's industry.
II: Warning Signs Consult your sales force in the First of May:
8. The levels of reduction of order.
9. Empty shelves in a warehouse or retail.
10. Plant operating at less than capacity.
11. Important customers of your customer is a problem.
12. The loss of key personnel.
13. Large layoffs or reductions in hours.
14. Tour restricted areas of the plant.
III: The warning signs of possible checks Problems:
15. Check with numbers printed on 300.
16. No name or address printed on the checks.
17. Initial checks with no printed information.
18. Address on the check and identification do not match.
19. No ID or picture ID expired.
IV: Why do I have collection problems:
20. Fear of loss of future business (not actively looking bad debt for fear of losing future work).
21. No Credit> Collection policy or political course.
22. Lack of collection of the training.
23. Reluctance to use external sources of funding early in the cycle of crime.
V: Seven reasons to have a formal written credit and collection policy:
24. Clarify who does what.
25. Providing training.
26. Supports actions.
27. Prevents unauthorized changes.
28. Encourages consistency.
29. Reduce wastetime.
30. Meets 95% of routine questions.
VI: Develop your credit and the "ability" Collection
31. Two basic concepts: (1) Time is the most important factor in the deterioration in the collectibility of an account, and (2) You can never have enough resources to collect all the default options.
32. Implement a program of early referral or treatment in order to maximize the recovery of internal and external.
33. Timely guidance programs, in addition to the collection, aidto identify and locate unpaid slow-pay and treat each accordingly.
34. Accounts 60 days or younger are more than 80% of the collection.
35. Accounts over 90 days old are generally less than 50% to collection (internally).
36. Working less than 60 days delinquent accounts in general, maximize the internal rate of return and recovery. We use a third for those aged 60 to 90 days late and easier to focus on the interior of slow pay accounts.
37. Develop and use a"60 days Tracking Program."
• Internal focusing all efforts on the frame that are more profitable.
• Home of offenders early - often in contact with them within 60 days.
• Get more while the 60 days pass.
38. Elements to be used within 60 days of Programme Monitoring - copies of statements / bills, letters, sales visits, telephone calls, suspend the credit.
39. After 60-90 days the choices are: continue to follow internallyresults of reduction, elimination, use of small claims court, an attorney or full-service agency for collection.
VII Collection letters:
40. The easiest way to raise money machines.
41. You can not solve problems or to determine if a payment problem.
42. A means of communication.
43. Subject to misunderstandings.
44. Collection of letters to maintain dialogue with the debtor.
45. Arelow cost.
46. It lays the foundation for the next action.
47. Allows the debtor to know that they have not forgotten them.
VIII: Other considerations in the use of reminder letters:
48. Electronic invoicing is not only the debtor.
49. His letter is in competition with professional mailers.
50. Change the look of each shipment.
51. It is necessary to deter debtors to dispose of the envelope.
52. It is necessary to encourage the debtor to open itsenvelope.
53. Increase the likelihood of positive results of your letter.
54. Address of holding a white envelope - you open it!
55. Add "address correction requested" and "Guaranteed shipping shipping" on the envelope.
56. Mark envelopes for encouraging openness. "Personal and Confidential," "Urgent," "Personal," "Confidential," "Do not bend"
57. Want to motivate debtors to pay for calls in their letters:
• "cost savings".
• "MaintainYour good credit history. "
• "still a value for the customer."
• "Avoid bad debt hard."
• "Avoid placing outside collection agency."
58. Make warning letters ever stronger.
IX: The collection phone calls.
59. Contact phone is more expensive but much more effective.
60. Letters and calls should incorporate monitoring of what is said in the letters.
61. Be two-waycommunications, calls can identify and solve problems.
62. Sell and maintain control over the collection calls.
X: the call of the collection:
63. The format of call pickup:
• Identify the debtor.
• Identify yourself.
• The demand for full payment.
• psychological breakdown.
• Determine problem or objection.
• Find a solution.
• Close call and getcommitment.
. Collection calls 64 years has three phases:
1. Opening phase.
2. Negotiation.
3. Closing.
Tactics Opening phase:
65. Verify the identity of the debtor. (I ask [name] ... is this him / her?)
66. Check the address of the debtor.
67. Identify.
68. Government debt (you owe us $ 567.35 ...).
69. Indicate the type of action you want. ("I need full paymenttoday. ")
70. Pause and let the debtor responds.
Negotiating tactics Phase 4-step (in this order):
71. First step: "I have to pay in full today."
72. Step Two: "When you send your payment in full?"
73. Step three: "How can you send today?"
74. Step four: "When I can expect payment?"
Close tactics:
75. Collector summarizes what is happening and when.
76. Payments are always expressed asamounts of money.
77. Points in time are always expressed as dates.
78. Debtors must confirm that you understand the following action on your part.
XI: The selection of Others:
79. Always use a full-service, compared to letter writing services, etc.
80. Search agencies reporting the accounts of all three major business credit reporting agencies.
81. Select an agency that operates on a national basis and not "local" or "regional" todebtors will be processed, even if they go outside their area.
82. Use an agency that provides optional services available litigation if a lawsuit becomes necessary.
XII: Twenty top tips - especially for doctors:
83. Conduct new patient pre-registration (and credit analysis) by phone or email before the first visit. This reduces the bottlenecks in the office and allows time for a study of credit.
84. Insurance Credit Bureaureports on new patients with poor credit history - to identify and resolve problems before they pay for services rendered.
85. Possible "warning signs" in the registration forms for new patients:
• Address - temporary or a post office box alone.
• Telephone - no one or restricted.
• Company address / phone - or equal to any home.
• Occupation - none.
• References - none, "a friend", "medical societies" or "yellow pages".
• Marital status - divorcedor separated, and unmarried young people.
• Age - the very young or very old.
• Lack of insurance coverage.
86. Medical hop (if known).
87. "What we have bills that are more important than your health?"
88. Collection ratio - 92% recovery of 95% is the average good for the majority of related studies.
XIII: Medical Appeals special collection called Debtor:
89. "I would say he has done several thousand dollars inrecent months, but only received a small payment. "
90. "It helped us in a time of need and in good faith, expected to be paid within a reasonable time."
91. "I know you want to protect your credit so you can feel comfortable if you or your family have to go back."
92. "In addition to an existing loan (for us to pay) ... or let some bills are others like ours that has for the past few months."
... Know the law debt collection, CollectionCredit bureaus and offices are highly regulated. Complete copies of the Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA) and a sample agreement approved HIPAA health professionals are available at: [http://www.ncsplus.com / regulations]
These are the 101 credit and collection tips and techniques, if applied effectively, can improve cash flow and translatein improving the profitability of the company.
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