In the Philippines, there are two primary collection tools or some would say strategy that are both considered highly effective. These are sending collection notice and doing collection call. It is a sound practice to send collection notice first then make a collection follow-up.
Letters sent by mail is a strategy a collector employs to have positive collection results. Letters in itself can be personalized or a form letter. Whatever it may be, the collector must bear in mind that the collection letter must be brief, its message must be short, concise and clear in asking: you want payment now. In writing a collection letter it is likewise a good technique to leave debtor a “way out”. Always allow debtor to save “face” by offering a convenient excuse for the delay such as overlooked payment or if payment has been made already and so on. It is important to remember that when you use collection letter, always avoid sarcasm as it alienates, destroy and impede collection efforts. Instead of dwelling on the negative tone one can use positive terms to increase the debtor’s desire to pay and lower the resistance to pay through cooperation, desire of maintaining good credit record and fair play. In general sending collection letter through mail is best for first collection effort because of its impersonality (sometimes familiarity is a drawback) and it is more appealing to an embarrassed debtor.
On the other hand, in as much that collection by mail is regarded as effective, collection by telephone is proven to be more efficient, faster and more cost-effective. In doing a telephone collection, a modulated voice, has its plus factor. Always remember that personality and hygiene is never a factor when doing “telecollection”. The collector’s voice and overall sound projection makes the difference between a successful and a failed collection effort. One can achieve this by keeping the telephone’s mouth piece at a proper distance, of course the collector must speak clearly, control his/her voice volume and must use right tone. It is very important to control the rate of speech and pleasing business like tone of voice is a must. These can be done through the use of a collection script and constant correct practice.
The person doing the collection call must have good credit knowledge. It would certainly help if he/she has a modest background of the companies credit and collection policies, applicable laws and collection terms and/or legalities. Personally, I believe that the tele-collector must also possess modest communication skills whether it is English, Tagalog or Cebuano. Debtors can easily determine if the one they are talking to a “professional collector” or to just a “telephone operator” that they can “fool around”. It is best also to assign tele-collectors who will not be easily carried away by his/her emotions such as pity or anger. Lastly, it is also necessary to provide adequate and proper logistical equipment such as good telephone (no extension), credit/collection records and basic equipment like calculator, among others. If the department can provide, a basic functioning computer it is highly advisable.
For questions and inquiries, call or text 0917-7220521 or email at elimtingco@cibi.net.ph