Controlling and Collecting Debts
Controlling and Collecting Debts Checklist
5. Follow up letters by using the telephone if appropriate and necessary The telephone is an essential tool in collecting payments. You should not underestimate, however, the cost and time commitment involved with telephone calls. Before calling the debtor, be fully prepared. Make sure that you have all relevant documentation, to hand including copies of invoices and are sure of the following information: Many organisations have three or four letters which escalate in tone and authority. In order to provide proof for any potential legal proceedings, these need to be issued regardless of other courses of action. Avoid using the word, `first', such as `first demand'. `First' implies `second' or more to follow and may give the debtor a reason to delay payment. Avoid the use of `final' unless you mean it, be polite, brief and firm. Give the debtor a better reason for paying than for not paying. For example: offer an opportunity to protect the debtor's reputation point out the advantages of continuing to trade together point out the advantages of enjoying - but not abusing - credit terms, and of ensuring their continued availability suggest that payment will ensure that third parties do not become involved express the hope that legal action can be avoided.
the debtor's correct name and legal status the name of the person you need to talk to the amount, date and full details of the debt the agreed terms and conditions of the sale or supply
details of previous communications, if any the date of the last payment (if any) received a prepared response for excuses, requests for more time to pay and requests for acceptance of part payment.
Future Practice Owner.
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