Effective steps in making a collection call

Almost always, in all of my seminars I am being asked on how to do an effective collection call. To be honest, an effective collection call is a combination of the mindset and the voice personality the collector is projecting to the debtor. The following are eight simple steps of an effective collection call:

First, Identify the Debtor.      Confirm that you are speaking to the right person. Confirm his or her address if you need to. Example: “Hello, may I speak with Mr. Juan dela Cruz or you can use another tack such as: Hi Mr. Juan dela Cruz, are you still located in 325 F. Ramos Street, Cebu City?”

Second, Identify Yourself.   Example: “This is Jose Santos of XYZ Company.       Use the oral disclosure notice. Example: “I am calling for an overdue account, amounting to P(overdue amount) under invoice no. 1234 dated December 3, 2011 which is now 60 days overdue, or you could also be more direct to the point. Example: I am calling you to collect your overdue account, and so on … Check your office policy on this disclosure. Do not use it when skip tracing, due to obvious reason.

Third, Ask for Payment-In-Full (PIF). Make your request courteous but firm. Give the debtor an alternative. “Your account with us is seriously overdue. Will you mail a check for (amount of overdue) today or do you prefer to send the check to our office with the payment this afternoon?”

Fourth, Make a Psychological Pause.             After giving the debtor a question to answer, wait for the debtor’s response. It is during this portion of the call that the debtor will give you reasons for not being able to pay. This is very critical, the telephone collector must be able to identify and determine if the debtor is “just stalling” or telling a legitimate reason for the delay. “

Fifth, Determine the Problem. Using questions gained during the psychological pause, ask questions to further determine why the debtor hasn’t paid. Listen for clues that will tell you how to get him to do so. A good advice is to have some sort of a “list of excuses and how to handle them”. This list could be taken from personal experience or through a workshop.

Sixth, Find the Solution.

Work with, not against the debtor. Maintain control of the conversation. Never start or be drawn to any argumentation. These will only worsen your position and strengthen debtors position not to pay. Sometimes, debtors uses this strategy to “test” if they can make the collector “angry and lose control”. Either way it is advantageous to the debtor. Try to work out an arrangement on problem items. As you respond, remember your final goal is payment of the account; not answering each objection the debtor may rise.

Seventh, End with a Commitment.

Agree on a method and date of payment(s). Ask debtor to write down. Ask him if he was able to get your name, address, and phone number. Confirm what has been promised to do and when.

Eight, Update you Files.

Makes note of all debtor conversations and promises. Tell the debtor you are doing this as a company policy.

 For comments, rejoinders and questions related to credit & collection, Mr. Ed F. Limtingco can be reached at [email protected].