One should always have a particular objective in mind before placing a business call, and that is especially true for merchant collections. Here are some tips for ensuring a successful outcome when you call your delinquent payers.
You may have to go through a few transfers before you get connected with the appropriate party. As soon as the person responds, listen, take notes and then wait for a pause.
Do not allow the other party to direct the conversation. Take control immediately, stating your agenda and directing your questions to the debtor.
When you’ve heard the person’s explanation, seize that moment to direct the debtor to the task at hand. Use a friendly tone, but resist being drawn into off-topic conversations.
You should expect excuses and perhaps apologies, too. Thank the person for acknowledging the delinquent payment, but move the conversation on quickly. You’ll want to do that to avoid being sidetracked into a long rendition of why the payment has not been made. Don’t waste your time listening to one excuse after another.
Do be polite at all times. One tactic delinquent payers use to deflect collection efforts is to incite the collector into an aggressive back-and-forth exchange. Give the debtor an opportunity to speak until they begin to run dry on words. That’s the moment to bring the person back around to the matter at hand. Once again, state the amount owed and asked for a commitment on when the bill will be paid.
Don’t be surprised if the person brings up the death of a relative or some other tragic story. It may be true, but often a debtor spins a tale to get you off the phone and to elicit undeserved sympathy. Do listen for any hints that may be dropped during the debtor’s recitation of why the bill has not been paid. This often yields valuable intel.
When people are under financial duress, they often let pertinent information slip out in conversations. Is a bankruptcy being considered? Does it sound like the person may be preparing to skip town? While you are on the phone, jot down as much information as you can glean.
If a promise to pay is offered, repeat it back to the person and ask for confirmation. This may avoid a back-and-forth discussion later if the debtor disputes the promise. Refer to your notes and repeat the same words the debtor spoke to you in a previous conservation.
Always be polite, but firm. Use the same tone you would use in any business interaction. Eventually your efforts will pay off. Lastly, end the call in a professional manner, preserving the person’s dignity at all times. When a person’s worth is acknowledged, the chances are much higher the debtor will remit payment.