Early Warning Signs & Symptoms of Bad Debt from Inside Your Business (Part 2)

In business you get what you want by giving other people what they want. All you need to do – listen well!

Let’s take a look at some signs and symptoms that may be early indicators of bad debt problems. Observing these early signs and investigating courses of the following symptoms, may save you from unwanted expenses in money and time.  Additionally, you can avoid the accompanying related problems down the line.  Be watchful for the following signs, and be especially vigilant if you see a cluster of signs in your business. Continue reading

Debt Recovery – Benefits of Outsourcing Professionals

“I must govern the clock, not be governed by it. ” – Golda Meir 

 

Why chase bad debts yourself when you can have a debt management expert doing the work for you?  These days, outsourcing debt collecting professional can solve many problems in your credit system and will save you time and money short term. Long term – you’ll gain faster payments, reduce your arrears and free up staff resources for more immediate business development.

Debt collection is an important function of any business as it maintains the life line of all businesses – cash flow.  We all know; no cash flow – no business! The fact is that debt collecting involves work that is challenging, very specific, detailed and time consuming. Continue reading

How to Connect with a Customer when Debt Collecting?

“Forget about the sales you hope to make and concentrate on the service you want to render”. – Harry Bullis  

Customer Service in Debt Collecting

Here are 13 simple but powerful rules to follow in order to properly connect to a customer when debt collecting.  Remember an extra little guideline: always give people a great customer service and more than what they expect to get!

  1. RESPECT customer’s need for face saving – you do not have to be blunt in your fist approach and spell out that you are collecting bad debt. Continue reading

20/80 Rule In Debt Collecting – Pay Attention

“Discipline is not the cage, discipline is the key.” – Denver M Lane 

Debt Collecting Techniques

Have you ever heard of the 20/80 rule?

It is basically a rule that shows that eighty percent of the output comes from twenty percent of the input.  This is the Pareto Principle, or as it is more commonly known, the 80/20 Rule.

It has been proven over and over that the rule DOES work. Continue reading

Essential Debt Collecting Skills – Negotiating (Part 3)

“Quality in a service or product is not what you put into it.  It is what the client or customer gets out of it.” – Peter Drucker 

Continuation of “Essential Debt Collecting Skills – Negotiating” (Part 2)

‘Since negotiation is the process we use from infancy until just before we die, the issue is not a matter of recognizing that negotiation is a fundamental life skill. The real goal should be to understand how to negotiate effectively to reach wise solutions to all kinds of issues. Continue reading

Essential Debt Collecting Skills – Negotiating (Part 2)

“I’d like to add that negotiating is not something to be avoided or feared – it’s an everyday part of life.” – Leigh Steinberg

Continuation of “Essential Debt Collecting Skills – Negotiating” (Part 1) 

Negotiation is a rather complex interaction. Capturing and controlling all its complexity is a very difficult task that requires knowledge, understanding and lots of practice.  Below are some of the essentials of negotiating:

  • Know what you are trying to achieve

Having a clearly defined goal before you start the process of negotiation is a must.  At first, it really helps if you write it down and keep it somehow visible for yourself.  Later, when you get more practice and experience this would come naturally as the first step. Continue reading

Bad Debt – How To Write It Off In MYOB

When a bad debt could not be collected after trying all possible collection methods, than a record adjustment must be made to reflect the uncollected payment. This is known as a Bad Debt Write Off.  A general journal entry must be made to reflect the uncollected sale.

The basic for the accounting procedure is the same; the actual procedure depends on the accounting system you are using.  Here is a helpful video courtesy of Doris Cahill on how to write off bad debt using MYOB accounting system.

Improve Debt Collection Processes Using Voice & SMS

“In this new wave of technology, you can’t do it all yourself, you just have to form wise alliances” –   CS Helu  

‘Collecting debts in the current financial environment can be an expensive and time consuming process. Thanks to innovative communications technologies developed here in Australia, there are tools available to automate most facets of the collections process.  Using automated telephone and SMS based channels helps to lessen the hard labor cost needed to get in touch with all the outstanding debtors you might have whilst fulfilling your obligations under the Australian Consumer Credit Code.

Consider how much time and money you may have spent trying to reach your debtors—costs that take away from your overall profit. Continue reading

Easy Personal Debt Management Tips

‘Do not wait; the time will never be ‘just right.’ Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along.’ – Napoleon Hill

There is no better time to crash change your financial philosophy and habits, than when you are already in debt.  For some reason, a real crisis is the best push to motivate us to change our old ways and habits to avoid the same pain.

Continue reading

Debt Collections – How To Get Customers To Pay up (Part 2)

“Customer service is not a department, it’s an attitude!” – Unknown

This is the 2nd part of the article, read our first blog post as an introduction…

A good debt collector knows that the “Carrot and Stick” approach also works with customers.  So, how does this technique work in debt collecting?

The previous post was about the “Carrot”.

Now, the “Stick”: Continue reading