How to be an effective collector (part 2)

As what I have said last week, I always believe that almost anybody with a decent education can be an effective collector. Personally and this is also based on over 20 years of collection experience, collection as a profession is not as complicated as others would like us to believe, but not as easy as some may have presumed. Part of one’s success of being an effective collector is one’s attitude and acquired skills. To continue, below are some of the proven mind set, attitude and skills to be developed to become effective in this profession.

Third, always endeavor to be an effective communicator and a good listener. In doing collection, the use of simple and easy to understand words and phrases are the best. Whether using the telephone or writing a demand letter, bottom line the simpler the words the better. In negotiating always make your request for payment is clear and concise. Explain what you want the debtor to do. When doing telephone collection, pronounce words clearly and most importantly pause strategically or what we call the “psychological pause” and learn to listen. For instance, after giving the debtor a question to answer, wait for the debtor’s response. It is during this portion of the call that the debtor will give you reasons for not being able to pay. This is what we call, making a strategic pause. This is very critical, an effective collector must be able to identify and determine if the debtor is “just stalling” or telling a legitimate reason for the delay. This is where your good listening skills come to play.

Fourth, learn to be versatile. An effective collector knows how to vary his or her collection approach, adapting it to the type of debtor with whom you are working and his capacity and circumstances. How to do this you may ask? In the first few minutes of the conversation, establish a rapport with the debtor first. Don’t to the common mistake of “preaching to collect”. 

Instead of stating the obvious, make an immediate appeal to sensibility or attempt to show them how simple the matter is. To be an effective collector, always downplay the amount. An effective collector will always make sure that there is a good “handle” to his/her debtor. You can start by saying: “since this amount is very small and we have done business with you and/ or known you as a client of outstanding reputation, may we send our collector today to pick it up or expect your messenger to send in the payment today?”

If this doesn’t give you a positive response then you can shift to another tactic, such as: “since this account is long overdue, I am afraid I have no choice but to file this in court (or in small claims court) which will be time consuming, not to mention a definite added cost and negative credit reputation for you.”   

Fifth, always control the collection negotiation. An effective collector always establishes the purpose of the discussion and set the tone by being on point but always business-like. Basic tips: (a) always use debtor’s name (b) stress that you will personally handle any complaint regarding product quality (c) make it easy to the debtor to see it that it is to their advantage to negotiate with you. (d) always use notes, let client see that you are writing notes and serious in resolving issue. 

Overall always remember this, proper preparation prevents poor performance.

For comments, rejoinders and questions related to credit & collection, send email to [email protected].