Improve collections through change

According to David Balovich, founder of Business Education Services,a credit consulting and training firm, headquartered outside of Dallas, Texas, we could improve collection efficiency through change. He noted, "if we are unable to identify what we are doing differently then we need to consider making some changes. Change, although difficult, is necessary if we are to improve. Change is difficult but also remember change is a constant. Unless we begin to identify what is not working and make changes then everything will stay as it was and collections will continue to be our problem".

The author recommended the following to improve collection.

Always Check Credit References Before Doing Business With A New Customer. We're not talking about the references the applicant has provided or a credit report. We all know who our competition is and if the applicant is not buying from us they are buying from them. So, let's call the competition first and determine what we are getting ourselves into.

Communicate With Sales. Sales will always be our best source of information whether it be a new or old customer. If we do not have good communication and rapport with our sales department then we will continue to have collection difficulties.

Subscribe To Professional Publications. The majority of credit professionals we've encountered subscribe to publications specific to the credit industry. Although these keep us abreast of what is going on in our profession it does not tell us what is happening in our industry or with our customers. What publications does the sales department subscribe to? We want to either get our own subscription or ask the sales department to send us the last issue when they have finished with it. These publications often have current information about our customers that will not be found in credit reports or obtained at industry group meetings.

Remain Calm, Attentive and Friendly. Never lose our composure or professionalism if the customer becomes upset or unpleasant. Never argue with the customer. Identify what they are seeking and if we determine we are unable or unwilling to satisfy their request tell them the reasons why. Never leave the customer believing we are going to do something we can't or have no intention of doing. (to be continued)



Editor's Note: Mr. Ed F. Limtingco, is the VisMin Manager of CIBI Information, Inc., a business information and receivables management company. He can be reached at 0917-7220521 or at [email protected]