Streamline Collection Management: Tools, Guidelines And Attitude

Streamline Collection Management: Tools, Guidelines And Attitude

Collection management is key to a company’s financial health , survival and growth. In certain periods, such as crises, collection management becomes a key factor, as debtors increase and their debts generate cash flow problems.

In these situations, collection management must be provided with all the necessary resources:

  • Technological , with adapted management software and different communication channels.
  • Processes and guidelines.
  • Specialized professionals , with training, experience and the right attitude.

Technologies For Payment

First of all, it is essential to have tools that provide all the necessary information to start the collection process. In this sense, it is key to have a CRM since:

  • It allows to improve the collection process.
  • It gives access to all the updated data of our clients from the status of their payments, to their purchase history.
  • It can be integrated and connected with other business applications such as commercial management tools, and thus streamline the processes involved in collection.
  • It includes modules to schedule actions and track them.
  • It allows to evaluate the results of the whole process.

Payment Guidelines

Before contacting the debtor, it is necessary to follow a series of guidelines:

  • Collect all the information about your history as a customer, purchases, volume and frequency, previous debts and collection guarantees.
  • Clarify the benefits that the debtor can obtain by settling his debt with our company, as the first part of the argument for collection.
  • Keep in mind what negative consequences it will have for the debtor if you do not settle your debt with our company, as the second part of the argument for collection.
  • Set alternatives and options for making the payment (deadlines, discounts for prompt payment, etc.).

Aptitude And Attitude For Collection

Finally, in addition to tools and processes, it is necessary to have the appropriate aptitude and, above all, the best attitude, in order to achieve successful collection management . In that sense, it is recommended:

  • Set 2 clear objectives : maintain the account and collect the debt .
  • Show a positive attitude both with our mission and with our interlocutor, so that we are convinced and it is perceived from the beginning that the collection will be executed properly.
  • Know everything that surrounds the debt , not only from the financial point of view, but also commercial, which means knowing the client and, if possible, the interlocutor, to improve the quality of communication, and personalize it.
  • In this sense, it is important to be able to visit the client in addition to establishing other communications by phone or email.
  • Offer solutions and outlets , with flexibility in the forms and terms of payment. In this way we will turn the debt into an opportunity to improve the commercial relationship and we will prevent it from being the end of it.
  • Carry out a follow-up and evaluation of the entire process to correct it and learn for future actions or collection procedures.

In short, to successfully tackle collection management, it is essential to equip yourself with technological tools, implement adapted processes and have professionals who have the appropriate skills and attitudes.

Also Read : Automate Collection: Strategies To Protect Yourself Against Customer Debt

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