By Ruoro Kairu
When you provide a service to your customers, your expectation is they’ll pay for the services provided in a timely manner. Some customer’s however, take longer than expected before they can settle their bills.
This delayed payment can take a toll on your business, affecting other services and operations in the business.
How do you ensure your customers pay on time?
Debt collection skills are key to any organization. If there are clients who are yet to clear balances from services offered, you should request for payment of the products or services rendered.
However, the methods your employees use to collect a debt can affect how effective the process is. With proper debt collection skills, the employees will be able to successfully collect the company’s debt.
I sat with a Samson, who’s worked in debt collection for eight years now. Here are three key strategies he shared in the best way to collect debts.
1. Develop A Credit Policy
An effective debt collection strategy begins with clearly outlining the terms and conditions customers should fulfill in order to establish credit. Moreover, the terms should outline the terms to be taken when the customer defaults.
This policy should be availed to customers before they access your services on credit.
2. Keep clear records
Next, there should be clear and up to date records and payment histories for each customer. This will help when you’re following up.
Proper records will aid in managing your employees time. They will always know who needs to be followed up and at what point the customer is at.
For example, for a client whose due date is close, you can send an email reminding them about the due date. For a client who is past their due date, you can focus your energy on collecting the debt.
3. Be assertive and sensible
Collecting overdue debt required a delicate balance. On one hand, you need the customer to pay for the services offered. This calls for assertiveness while collecting.
On the other hand, you can’t go banging on the customer’s door every day. In most cases, the customer will come back to you if they need the service you offer. This calls for a certain sense of calmness, so as not to chase the customer away.
Leaning this delicate balance will help the company succeed in its debt collection efforts. If you’re struggling with debt collection and would like to improve on the results, enroll your team in a debt collection course. Contact us today for more details on the Effective Debt Collection Skills Training.