CHAPTER 6: COLLECTIONS
When collecting from a difficult customer, you may have to go higher up. For a consumer that may mean contacting the co-signer; for a business, that may mean the customer’s accounts payable manager, controller, or CFO. { Be prepared to offer payment options, such as credit card payments or payment plans. Take advantage of any leverage you may have, such as holding orders or holding AP payments. Cut your losses. Decide when the cost of collection outweighs the benefit of the collection. What is your write-off amount? What amount will be turned over to a collection agency? Ensure swift application of cash receipts to avoid wasting time on unnecessary collection calls. What processes need to be improved to reduce cash application delays? Improve relations and collaboration with the sales department: { Implement work shadowing with sales reps and other key areas to improve understanding. { Ask for help in resolving discrepancies—remind sales that the customer trusts them and issues can be resolved easily and without loss of future business with sales’ involvement. { Update sales on potential credit holds with key accounts. Give sales a chance to resolve issues before the credit hold. { Be more proactive than reactive. What has the customers’ past payment behavior been? Research the customers’ history before calling. Stay on top of them and consider moving them to another form of payment.
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THE ACCOUNTS RECEIVABLE SPECIALIST CERTIFICATION PROGRAM E-TEXTBOOK
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