9 Tips for Making Collection Calls Less Painful

Collecting money is one of the most dreaded aspects of running a business. I would rather scrub my bathroom floor with a toothbrush than pick up the phone and ask a customer to pay a past due invoice. The secret is to have awesome employees on your team and great systems in place. These tips will help you take the pain out of collecting money.

1. Refresh your memory – Review the customer’s purchase, payment and call history.
2. Set a goal for the conversation – Early in the collection process, the goal is to confirm they received the invoice, and a check is in the mail. Later in the collection process, the goal of the conversation may be to offer a payment plan.
3. Smile – Before you dial the number, put a smile on your face. Your voice will sound more pleasant and non-threatening.
4. Be polite and respectful – The worst thing you can do is make the customer mad and shut down the lines of communication. Even during the collection process, you represent the company’s brand as an extension of the customer service department.
5. Stick to the facts – No need to embellish the truth, so avoid saying words like always, never, and large. Instead of saying “you have a large balance that is severely past due,” say “the balance of $12,500 was due last Thursday.”
6. Be easy to pay – Offer payment options by accepting credit cards over the phone, online and at the point of sale. Also, consider accepting ACH payments and offering customer financing.
7. Create a sense of urgency – “I can process your credit card over the phone. It will only take a minute.”
8. Document. Document. – At every stage of the collection process, document the details of the conversation and promises made.
9. Follow up with an email – After every phone call, send an email to the customer that recaps the conversation.

A sale is not a sale until cash is collected!

Repeat after me…a sale is not a sale until cash is collected.

Don’t stop until you cross the cash finish line. Your collection team needs your support. Make accounts receivable collections a priority and a team effort.

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