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

When making collection calls you must ask questions that require specific answers.  Ask all your questions with precision and make the transistion from questions to a payment arrangement easily.

All your questions should be clear and to the point, with silence after each question.

Example:  

Debtor:  I can't pay, I don't have any money.

Collector:  Are you working?

Debtor:  Yes, but I just started a job and don't get paid for 2 weeks.

Collector: What day will you get paid?

Debtor: Friday.

Collector:  Okay, then you can mail me a money order for $25 on Saturday.

This  example can go so many differetn ways depending on the debtor's responses.  YOu have to be positive and get them to agree to make a payment.  Once you reiterate what is going to happen, send them a confirmation letter with a payment envelope.  Then call them on Friday to remind them to mail the payment the next day.