Today is a turbulent time for business and the economy is in a heightened state of flux. Reaching Business Targets is difficult. Credit thus plays it’s part in achieving higher sales and expanding markets. Unfortunately, poor credit management can kill a business. Assessing business risk and prospects, deciding a credit limit and credit period is the backbone of credit management. These areas are least understood or controlled by most organisations. This workshop addresses the concerns of an excellent organisation.
Course Contents :
Building a Credit Policy:
Fundamentals of Good Credit Management
Principle of Offering Credit, Terms of Payment
Collection Policies and Practices:
Building Credit Policy based on Needs of Market,
Credit Ratings-Will They Pay?
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
Does your company’s credit policy ease or impede collections?
Tools of the trade: Staying organized and in control of your massive workload
Why no business can afford to ignore collections
Power techniques for keeping track of what you’re owed
What you can do to prevent many accounts from becoming past due
The importance of using up-to-date and accurate information
Secrets of Successful Collectors:
Putting yourself in the debtor’s shoes: why people don’t pay
Why you’ll be more effective in collecting if you make it as painless as possible for the debtor
How to stay positive when you’re surrounded by so much negative energy
Keys to establishing a rapport with debtors that help you collect more money fast!
Smart tactics that help you ease the debtor’s defensiveness
Maintaining goodwill so you don’t lose potentially good long-term customers
When to turn up the heat — and when finesse will get you further, faster
Be consistent — always follow up when you say you will
Tactics to use when a debtor blatantly lies
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
The Telephone a Powerful Collection Tool:
The importance of adopting a positive frame of mind
Maintaining a client status report — important info you need to keep tabs on
Getting past the gatekeepers who prevent you from speaking with your debtor
When’s the best time to make collections calls?
Should you ever put a debtor on hold?
Listening and questioning skills that’ll prove invaluable in getting customers to pay up
What days are “prime” collection days?
Essential follow-up documentation to phone conversations
One thing you should never do with a client — argue!
Soothing the irate customer
Reenergizing after you’ve had an emotionally upsetting call
Establishing a rapport with clients — especially those you know you’ll be working with in the future
How to handle abusive insults and yelling
Excuses – Handle Them With Confidence and Finesse
I never received a bill for the product or service …I misplaced the bill — when you send another, then I’ll pay.
you probably never sent it!
you sent it to the wrong place.
you sent it to the wrong person.
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 another 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 is opened — and read!
How many collection letters are too many?
What you should always include along with your collection letter
When should you threaten legal action? 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-ups: The importance of doing what you said you were going to do
Documenting a debtor’s payment plan agreement — get it in writing!
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 :
Can a debtor sue you for harassment? Yes — learn when and how
What are your options when you know — without a doubt — that the debtor has no intention of paying
Working with outside collection agencies
What you need to know about laws that apply to collections.
Don’t put yourself or your company at risk: Learn which laws collectors violate most often
Tips for tracking down customers who’ve skipped out on their debts