Keeping the Peace

In small communities it is difficult to not take receivables management personally. Having a hard-nosed or a tough approach to collections does not always yield the best,

or most desirable results. Such attitudes can make a person less effective and decrease

the chances of payment. Business owners must be careful not to offend or threaten

their customers as client relationships are an important part of building and maintaining

a business in any community.

Occasionally, a collector must be stern when explaining the current situation, but the

most effective collectors never bully, threaten, or raise their voices. Instead, they clearly

explain the account situation, the potential actions and the consequences that may

follow if payment is not received.

Keep in mind the following traits, so as to keep your customer on side, while still

getting your overdue accounts paid.

Patience: Not everyone has the means to pay their past due account in its entirety. Most debtors are going to need your expert guidance in order to properly budget their

existing debt. You have to be patient with them as you conceive an appropriate payment

plan that is going to lessen their debt load and result in payment.

Persistence: The “out-of-sight, out of mind” mentality is quite common when attempting

to collecting debt. If you keep persisting, you have a better chance of being paid when

the money becomes available. Keeping the account fresh in their memory is an

important tool to recovering debt

Empathetic: Being sensitive to the debtor’s current situation will most likely aide in your

attempts in getting paid. Most people have full intentions to repay debt, but, due to

unforeseen circumstances, have fallen behind on their bills. Working together to resolve the debt will instil proper money management and better the individual for future

financial transactions.

Combining these three traits, patience, persistence and empathy will usually result in

fewer receivables for your company, reduce stress and increase cash flow.