Collecting Past Due Accounts - Demanding the Balance in Full

COLLECTING PAST DUE ACCOUNTS: - Demand The Balance in Full" By Jim Finucan =A9 2005 Tiare Publications

A collection call, in itself, is a demand for the balance to be paid in full. That's your goal every time you pick up the phone to call a debtor. It's easy to get complacent, though, and that can take the edge off your technique. If you're not careful you can find yourself dunning for only a partial payment.

The word "payment (as in "partial") shouldn't leave your lips until it has become obvious that you have no other option but to give up on the idea of getting the full amount. Up to then you must sincerely believe that the full balance is obtainable. If you don't come across with that kind of certainty the debtor will sense it and try to exploit that weakness. You must convey =96 clearly yet tactfully =96 that the debtor has to find the money to satisfy the bill and he most do so now. Today. If he needs a reason give him one =96 or two, or even three:

"There's an audit with my supervisor on your account. If he sees that this balance isn't paid in full there will be an immediate recommendation for legal action. But we're OK because you have a week to get the loan you need."

Or,

"This delinquent balance is going to be reported and will go on your credit file on Friday (give the debtor a specific day) so if we're going to prevent that from damaging your credit for the next seven years we have to find the money now."

(debtor) "What do you mean?

"I mean that once this gets reported to the credit bureau it can/t be removed. If you later pay the amount in full it will still show as having been delinquent and that will be a red flag for anyone who checks your file in the years to come. You still have the opportunity to prevent this; please don't let it get away. Do yourself a favor."

Or,

"If the loan can't be approved for the entire amount I may be able to get you a settlement. By that I mean I might get my client (or your boss) to accept a little less. (Make it sound as though you may be able to get the debtor a "deal.") But your bank has to call me and confirm that you have applied for the loan."

Put the debtor in a tough spot and then offer him the answer to his problem. Once you are able to raise concern in the debtor show him how he can pay the bill using the assets he has..

The moment the debtor realizes that time payments are not an option you have gained ground. Be consistent. Don't digress. Don't allow any wasted words or casual conversation. Stick with your ultimate goal: getting the balance in full.

(End)

Jim Finucan knows all about the dances, dodges and delays debtors will try to pull. Let Jim show you how to double or even triple the money you collect from your accounts receivable. Check out his unique collections manual "Past Due." For more information visit: www.tiare.com/pastdue.htm