Controlling and Collecting Debts
Controlling and Collecting Debts Checklist
4. Write positive letters
Recognise that in the first instance an approach by letter or email is easier and cheaper than approaching your debtors by telephone. Be sure that your letters are courteous, clear, specific and that they are addressed to a named executive. Be firm, concise and unwavering. Do not include an apology, suggest compromise or refer to the possibility of part- payment. Do not avoid the issue of payment now by asking about reasons for non-payment rather than for payment. Recognise that an excuse is no substitute for your money. Understand that if you make threats you must be prepared to carry them out or you are likely to lose credibility and are unlikely to be taken seriously in the future. Having pursued a debt by letter or email, re-apply your control of credit procedure before extending further credit. Consider putting all business on a deposit in advance or cash on delivery (COD) basis until you receive payment and can satisfy your conditions for the granting of credit. For maximum impact ensure that your correspondence appears to have been customised to the individual. This can be demonstrated by making specific references to the amount owed and to any previous letters, quoting dates.
Future Practice Owner.
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