Credit Policy for businesses and how to extend credit and manage credit risk

There are some areas that credit managers or business owners should have experience in or learn in order to have more success at debt collection.

• Developing a telephone voice
• Refining your listening skills
• Preparing your pre-call plan
• Making an opening statement
• Asking precise questions to come to a payment agreement
• Managing the emotional side of the call
• Handling objections
• Closing the call

You have to remember that to be successful collecting the money that is owed to you, you must:

• Be interested in people, and be a good communicator verbally and in writing
• Be persuasive and persistent, with the sensitivity to deal fairly with people in often difficult situations
• Be able to stay calm under pressure
• Have strong negotiation skills and the ability to explain financial matters firmly and clearly
• Have the ability to explain payments, financial terms and credit services and policies
• Be able to understand relevant legislation concerning data protection and harassment
• Have office administrative and computer skills

When dealing with people who don't want to hear from you, it is very important that you have good people skills and can deal with them in a professional and compassionate manner.  Remember that being compassionate and polite goes allot further than being rude and forceful.  You can be forceful while maintaining your professionalism and will collect more money because you do so.