Collection of Overdue Outstandings

Introduction

In today’s challenging economic times, managing cash flow is more important than ever. Oftentimes, the root of the problem is having too much uncollected revenue.

Managing cash receivables is both unpleasant and an unfortunate reality of a successful business. No one likes calling anyone because they owe money, but if multiple customers are behind their payments, then it can lead to a cash flow crisis. The build-up in the Accounts Receivables could be resulting from poor billing / invoicing procedures or many other controllable factors.

In this workshop the participants will learn Key collection tools, tips, and techniques, develop effective collection strategies necessary to maximize their  cash collection effort.

Course Content

• The ‘new normal’ for collections – how are lenders responding?
• The key challenges facing collections teams
• Exactly what needs to be added to a collection letter … and just as important … what should NOT be included.
• How to deal with Lack of current contact information of debtors
• Challenge in Oral Contracts and not having any written communication
• How to use technology to your advantage
• Connecting to the right decision maker 

Key Collection Tools and Techniques 

• Recognizing Excuses and Delaying Tactics
• Telephone Collection Techniques
• Developing Personal Assertiveness
• Negotiation Skills for Successful Collections
• Customer Sensitive Collection Strategies

Managing and Controlling Your Receivables/ Outstandings: 

• When is it time to collect? Understand when it’s time for action — and what action to take 
• How to steer clear of the collection mistakes made most often 
• Tools of the trade: Staying organized 
• What you can do to prevent many accounts from becoming past due 

Invoicing Issues

Secrets of Successful Collectors 

• Keys to establishing a rapport with debtors that help you collect more money fast! 
• Maintaining goodwill so you don’t lose potentially good long-term customers 
• Tactics to use when a debtor blatantly lies 
• Getting past the gatekeepers who prevent you from speaking with your debtor 
• How to handle “special” collections situations — including when a debtor writes a bad check, how to get full payment from someone who thinks a partial payment is enough, and more 
• When — if ever — should you agree to settle a balance for less than the total amount owed 

Excuses – Handling Them With Confidence and Finesse 

• I never received a bill for the product or service …
  • you probably never sent it!
  • you sent it to the wrong place.
• you sent it to the wrong person.
• I misplaced the bill – when you send another, then I’ll pay.
• The Cheques in the mail.
• I just don’t have the money right now.
• Our computer prints all Cheques at the end of the month.
• We’re having serious cash flow problems — but we’re good for it.
• The boss is out of town and no one else has the authority to approve Cheques.
• I have moved to other company, somebody else is in charge.
• We’re expecting big Cheques in a month and then we can pay the balance IN FULL.
• The computer is down so we can’t print any Cheques right now.
• I don’t owe what you say I owe you.
• Those weren’t the payment terms I agreed to!
• I’m sure we’ve already paid that bill — your records must be wrong.
• This bill is way too high — I’m not about to be overcharged !

Collection Letters & Written Documentation of Conversations 

• How to make sure your collection letter/email is opened – and read!
• How many collection letters/emails are too many?
• When should you threaten leg al act ion? And, just as important, when is it a BIG mistake?
• Phrases and words that do NOT belong in a collection letter
• Standard reminder letters – when to send and what to say
• Follow up emails
• Documenting
• Using certified mail – when and why
• Final notice : What to say and how to make sure the debtor understands you mean business
• Gentle reminders for people who usually pay on time

Legal Issues

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