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

Observing a Master Negotiator at work … is an ‘Art Form’.   But, did you realise YOU could EASILY become one yourself? 

NEGOTIATION is an essential skill in our everyday interactions. We daily use it in all areas of our life without even realising it.  Some people are naturally better negotiators than most.  But negotiation is a skill that all of us can learn to master if we put an effort into it.

Becoming a master negotiator will help everyone generally in life, but especially in business.

The role of effective negotiation cannot be underestimated in the debt collection. Debt collecting requires you to become a master negotiator and master the skill of finding a win-win situation that would make your client happy to pay you, and to pay you as soon as possible. Continue reading

Small Business Bad Debt is Easily Avoidable

Seven Steps for Effective Cash Management for Your Business

Did you know that 85% of new small businesses close down in the first year of operation!

According to a report conducted in an issue of USA Today, the statistical failure rate of small businesses in America is staggering.

  • In First year of business 85% of small businesses close
  • Second year statistic is 70%.
  • Third year in business shows a small improvement in staying power; 62% of businesses will stop working by now Continue reading

Don’t Fear the Customer

Don’t Fear the Customer

Posted on April 4, 2011 by Michelle Dunn

“Some business owners have had their business for months or even years and when I give talks about credit policies, credit limits, and credit applications, they say, “I never did any of that and I have so many customers that owe me money and are past due.”  Many think it is too late to do anything about it, or they are afraid to ask a customer for the money or ask them to fill out a credit application.  They think they will make the customer mad and lose the business.  If the customer is past due or not paying you, why do you worry about alienating them?  This is a customer you do not need.  If someone is not paying you, they are not helping you.  Wouldn’t you rather have a customer that pays you? Stop working for free.

If you have customers that owe you money right now, today, you can and should do something about it.  Add up how much money is past due or is not being paid, the dollar amount will shock you.  Now is the time to take action!” Continue reading