The document outlines effective strategies for debt collection, emphasizing the need for persistence, negotiation skills, and proper communication. It provides insights into when to involve a collection agency and what factors to consider when selecting one, including their qualifications and collection procedures. Furthermore, it discusses the negative impact of late payments on business operations and offers solutions such as establishing clear policies, invoicing promptly, and offering payment incentives.

6. CREDIT INFORMATION CORPORATION

11. When collecting money collectors need to be persuasive
and persistent, with the ability to deal fairly with people
in often difficult situations. Be able to remain calm,
negotiate, have office and computer skills and be able to
explain and discuss financial matters clearly.

12. Ways To Collect Money
• Visit them and ask them for the money.
• Start buying where they get theirs, and say good
morning. Then go back to your office and call them,
then call them again.

13. • Report the debt to the credit bureaus, and revoke their credit,
send them a final notice letting them know this has been
reported and that their credit has been revoked, send the
letter in a flat rate priority mail envelope. If they still ignore
you, take them to court and move on.

14. Some of the most common and least effective things businesses do with
past due accounts are:
• Ignoring the account and hope they will pay.
• Don’t call because they don’t want to make the past due customer mad.
• Don’t have any recourse because they never got a signed credit
application.
• Don’t have specific payment terms on any of their paperwork.
• Never call or mail the customer, no monthly statements are sent.
• Accept debtor’s excuses, do nothing and don’t get paid.

15. Collection Agency
A collection agency works with you to recover debts owed
to you. To maximize your recoupment, you'll need to collaborate
closely with the agency. The more information you can provide,
the better your chances of recovering your money.

16. Here’s a list of the information you should have ready when you hire a
collection agency.
• Names, addresses and telephone numbers
• Cell phone numbers and email addresses
• Names of the debtor’s spouse, friends, relatives and neighbors
• Information about past efforts collecting the debt
• Details about the purchase or transaction, including the date, contracts
and credit applications
• Nicknames and maiden names

17. What should I look for
hiring Collection
Agency for my
business?

18. • Do your research
• What are thier
collection procedure
• Understand how
they will work for
you
• Ask if they are
qulified?
• What is the pricing
instructure?
• Ask of the names and
Phone numbers of the
current costumers. Call
them. Ask them.

19. Do your research
Different agencies have different
specialties. For example, some are better at
getting results from larger businesses, while
others are skilled collecting from home-
based businesses. You’ll want to make sure
you’re working with a company that will
actually serve your needs

20. What are thier collection
procedures
do they only send letters or do they
send letters and make phones calls,
and can you see copies of the
letters they send out?

21. Understand how they will work for you
While you may be passing along these
debts to a collector, they are still
representing your company. You need to
know how they will represent you, how
they will work with you, and what relevant
experience they have.

22. Ask if they are qualified
This may seem obvious,
but before you hire a
collection agency, you
need to ensure that they
are qualified and licensed
to act as debt collectors.

23. What is the pricing
structure, is it a flat
monthly fee or a
comission?

24. Ask of the names and Phone
numbers of the current
costumers. Call them. Ask
them.

25.  How long have you been using this
agency?
 How has their service been so far
 How many accounts do you normally place
with time a month?
 What do you like the most abouth this
agency
 What do you this like them

26. Now that you have to
decide on a collection agency
to use for your company, you
have to figure out when is it
time to use a collection
agency.

27. When an account reaches 90 to 120 days
past due, it's time to consider placing them with
your collection agency. Some people place
accounts at 60 days, some wait well over a year.
Just remember that the sooner you place an
account with a collection agency the better your
chances are of getting paid.

28. These are the signs to look for that
you may need to place an account
with a collection.
• A fairly new ( less than a year) costumer does
not respond to invoices, statements or letters.
• Your payment terms fail.
• The costumer start denying responsiblityfor
the debt.
• The costumer has marital difficulties
• Starting a pattern of paying late.
• Frequent address and/or phone number
changes.
• Frequent changes in thier job, where and
when they work.

36. According to Xero, delayed payments can
hinder growth opportunities with 34% of
respondents reporting they were unable to
purchase new equipment, whilst 20% said
they couldn't hire additional staff as
quickly as needed.
Introduction

37. Late payments impact
your ability to run your
business well because if
you don’t have enough
money coming in, you
won’t be able to pay your
employees and cover your
other monthly expenses.
Think of this as a domino
effect.
What is the impact of late
payments?

38. The another impacts
of late payments can
cause a lot of angst
and stress for you and
cause your business to
lose money but the
good news is that
there is something you
can do about it.

39. Obviously these numbers are
alarming because late
payments are not just a
nuisance, they have the ability
to sink your business. But it's
important to not simply
dismiss this as the status quo
or a problem that is too big to
manage. By looking at the
affects late payments can have
on your business you can
tackle the issue head on. As
they say:

40. • Create policies. ..
• Offer a range of payment
options. ...
• Have clear payment terms. ...
• Invoice ASAP and ask for prompt
payment. ...
• Correct invoicing. ...
• Track and review client
payments. ...
• Run credit checks or have credit
applications. ...
• Get a deposit.
What to do?

41. Some other ways to help
you get paid faster
include:
• Offering early payment or
term payment discounts .
• Start charging penalties for
late payers.
• Get payment up front.
• Assign one collector to
specific accounts regularly.
• Cancel any back orders until
existing inventory is paid for.