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Mix of Telephone and Letter Collection – Part 2

Last Updated
August 22, 2009

The most effective method of collecting outstanding accounts is to use a mix of telephone and letter.

A letter can notify the customer of an overdue amount at an early stage. The customer would then have a short period of time in which to react to that letter, prior to further action by you.

If there is no response to your first letter you have to decide what your second response will be: second letter, first telephone call or personal visit.

You must have a procedure for outstanding accounts that is based on increasing pressure. You should not attempt to ‘water down’ your approach to mainstream debtors who will, without doubt, consider paying the most determined creditors first. You need to respond in a positive way that will clearly inform the customer that the outstanding account is important to you, and should warrant a higher measure of concern from them.

For example: if you sent a second letter that was similar to the first letter the customer is unlikely to respond, if you telephoned the customer and repeated, in essence, what was written on your first letter, again, you are unlikely to get the response you want.

The telephone will get you information to base your collection action on. For instance: the customer can tell you they can pay in 10 days, they can tell you they do not have an invoice, they can tell you the goods have been returned, they can tell you, or of course you can ask, the specific reason for the outstanding account.

Sending an immediate letter to the customer summarizing your telephone agreement is good practice and a must when you have any doubt about the customer’s intention to maintain the agreement.

As a further response to non-payment (after first letter and telephone call) you can either send another letter (in the form of a Final Demand Letter of Collection) or telephone the customer to ‘lay down the law’ and insist this is the last opportunity to pay prior to ‘further action’. You may decide that further communication from yourself would achieve very little, as such, you will employ a debt collector.

Article Index

  1. Telephone & Letter Collection Tips
  2. Mix of Telephone & Letter Collection – Part 2
  3. Do I Employ a Debt Collector - Part 3
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