Collection Methods
Many a relationship has foundered on receipt of an arrears letter. However, it is not wrong to let your customers know when payment is overdue.
What you have to evaluate is how you are going to inform that ‘very good customer’ that they have arrears and still maintain that ‘great relationship’.
This article will outline a number of options, for most situations.
There are seven collection methods:
- The Invoice in Credit Control and Monthly Statement
- Telephone Collection
- Letter Collection Procedure and Examples – Automated or by Selection
- Telephone & Letter Collection Tips
- Credit Review and Personal Visit to the Customer to Customer
- Litigation by Solicitor or In House
- Outside agency – Using a Debt Collector or Litigation by Solicitor or In House
Numbers 6 and 7 are covered in the section ‘
The collection methods you use must be cost effective with an efficient system to identify, action, monitor and follow-up debtors.
However, some thought must be given to the industry in which you operate and/or the client base you sell to.
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