Are you the wind or the sun of debt collections?

So now you’re prepared for the debtor’s reaction, and you’re not going to feel sorry for the debtor.

You finally pick up the receiver and dial…..

Debtor: Hello

You: ?????

Why debtors are like babies

Let’s say you get married. Just like Cinderella and the handsome prince, you plan on living happily ever after.

Well one day, the stork drops by and leaves you a howling, screaming, demanding infant. But you love this baby. You sing to her. You play with her. You feed her and give her baths.

Sympathy for the Debtor

“I don’t have any money.” “I’m short of cash.” “I just can’t afford to pay today.”

These are typical debtor responses. And since all of us have had financial problems at one time or another, we might feel badly for the debtor. It’s easy to feel sorry for them.

I’m afraid people will yell at me

If you’re afraid to pick up the phone and call to collect your overdue monies, is it because you’re afraid of how the debtor will react?

This is an actual letter we received from a debtor:

Dear Mr. King,

I’m writing to let you know that I have been in prison over the last eight months. A person broke into my apartment and stole everything. I found the person who did it and shot him four times. I will take up my account as soon as I am released from prison.

Very truly yours,

John Doe

Hate to make collection calls? You are not alone

As we talked about in a previous post, your most effective way of collecting overdue monies is an in person visit. But that’s not always possible or practical.

Your next best option may be to telephone and ask for your money. However, even though using the telephone is vastly more effective than collection letters, many people hesitate to pick up the phone.

We’re hiring!

We’re looking for a Client Services Manager for our Department of Client Services/Operations.                                              

Summary: Coordinates department activities and special projects.  Supervises staff in accordance with all company policies, procedures, and administrative directives.  Ensures that the objectives and expectations of the clients are achieved.

Personal Visit: most effective and least used

Most people would prefer not to confront their debtors face-to-face. However, as the following story demonstrates, it is the most effective method of collection. (As told by Martin Sher.)

 I received a frantic call from a business friend of mine. One of her customers was several weeks past due on a bill for $80,000, and she didn’t know what to do. Her debtor was located nearby, so I suggested that she go see him in person. She reported back to me a couple of days later.

The customer was surprised to see her, but was very nice. He bragged about how his business had grown and took her on a tour of his factory. He explained that his fast growth had caused him to be short of cash, but promised to mail her a check within a week or two.

I recommended she make a follow-up note for two weeks later, and if he didn’t pay as prom­ised, she should go back and see him again. She groaned, but said she would.

She called me a few weeks later and was as excited as if she had won the lottery. In a sense she had. He didn’t pay as he had agreed, but she followed my advice and went back to see him. He wrote her a check for the full amount on the spot.

Was it worth $80,000 to personally visit the man?

You bet it was.

Sometimes it’s best to surprise your debtor. Other times you might want to call in advance. If you are unable to contact your debtor ahead of time, you might consider leaving a message specifying the date and time you will visit. Make sure you bring all the proper documentation with you so you can prove exactly how much is owed.