Your collector wants to collect money for you. The better the tools you provide them, the greater success your collector will achieve. Here are five tools/tips to help your collector(s):
Tip 1: Communicate Reasonable Expectations
Make sure you have reasonable expectations for your collector’s performance. What percentage of the portfolio do you expect the collector to recover? Are your expectations reasonable based upon the size of the claims, the age of the accounts and overall collectability?
Tip 2: Arm Your Collector with Proper Documentation
Despite best efforts, it may happen that the correct corporate name(s) of the customer is unknown, the wrong party may be invoiced or sufficient sign offs were not obtained, make sure you have a credit policy to insure you have proper documentation.
Tip 3: Include the Collector(s) Input in Your Collection Policy
A good collector will have valuable insight about connecting with customers. Don’t limit the collector’s involvement to the tough accounts.
Tip 4: Reward Your Collector with Feedback for Better Success
Everyone wants and needs feedback. The interaction between you and your collector(s) will enable you to understand the reason for the uncollectable accounts that may be traced back to your sales/business process.
Tip 5: Empower Your Collector
Make sure your collector(s) have access to educational tools and classes in and out of a classroom setting. Time to network with other collectors and credit managers in and outside of your industry that will allow the collector to gain valuable insight to best practices in the industry.
A great collector is invaluable. Help them to help you.
For more information on debt collection, credit and collection policies contact FFGN. We have the experience that pays….