COURSE :

Effective Debt Collection

Overview

Collection of overdue accounts is a very common problem for business, especially in bad times. To deal with this problem effectively while maintaining relationships with the customers at the same time, need special communication skills. Selection of the right method of collection makes the collection more effective and positive.

Debt collection is the process of following up for payments due by debtors (businesses or individuals). Organisations specialising in debt collection are known as collection agencies or debt collectors. Collectors work on behalf of creditors to get debtors to clear pending payments, for a fee or commission.

Debt collection and recovery are extremely important because cash flow issues could lead to serious organisational challenges. A point to note that though debt collection and debt recovery are almost used synonymously, there is a slight difference between the two.

Collection communication is very important in debt collection. An effective collection communication is required to achieve the collection goals and at the same time maintaining a warm relationship with the customers.

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COURSE OBJECTIVE

  • Equipping credit control and collection staff with the necessary skills in effective collection.
  • Applying pressure in collection but at the same time maintaining positive relations.
  • Dealing with difficult customers and being in control of the situation.
  • Achieving company’s objectives.

LEARNING OUTCOMES

  • Acquiring the skills and confidence in selecting the appropriate methods and implementing collection strategies in the right situation.
  • Recognising and effectively managing the customer’s avoidance of the debt recovery.
  • Customising and constructing an effective collection procedure.
  • Communicating effectively with debtors.
  • Raising the ability to achieve company’s objectives.

WHO SHOULD ATTEND ?

  • Strategic leadership of an organization responsible for establishing and implementing high-level decisions.
  • Finance and loan managers carrying out their responsibilities involving financial transactions and issuance of loans.
  • Accountants and other executives who need to understand credit control management thoroughly.
  • Collection agency members who wish to enhance their knowledge of related aspects.
  • Legal and financial advisors of organizations playing an important role when a legal or finance leakage issue occurs.
  • Any other professional interested in knowing more about debt collection and recovery.

ORGANIZATION BENEFITS

Organisations whose professionals undertake this Debt Collection, Recovery, Negotiation and Credit Control Management course will benefit in the ways mentioned below:

  • Successful data collection, recovery, negotiation and credit control management handled by trained, experienced professionals.
  • Application of advanced technology to enhance important initial steps of screening and tracking.
  • Well-drafted, clear credit policies and other documentation to ensure precautions and protocol are understood and followed diligently by all.
  • Stringent screening protocol when establishing new customer relationships or facilitating large transactions.
  • Regular audits of organisational operations to check for possible risks leading to the major financial impact.
  • Training of other employees on all critical aspects regarding debt collection, recovery, negotiation and credit control management.
  • Organisational stability because of stringent guidelines and precaution by employees to prevent fraud and defaulters.
  • Adherence with all required universal standards of operation.
  • Strong, well-defined credit control systems followed and adopted by all to minimise chances of incorrect judgements of the organisation that could impact it severely.

COURSE OUTLINE

Introduction: The Importance Of Debt Collection

– Meaning of debt collection
– Reasons for debt collection
– Consequences of collection failure
– Importance of Win-Win relationship

Role & Mindset Of Debt Collector

– Role – Company’s interest
– Mindsets:
(i) 1st Mindset – Think of Company’s Interest & your duty
(ii) 2nd Mindset – Think in the capacity of debtor

Methods Of Collection

– By Telephone (most effective and friendly)
– By Face to Face
– By Collection Agency
– By Legal Action

Collection Process

– When to collect (Timing)
– How to collect (Methods)
– What to say (Scripts)

How To Use The Telephone Effectively In Debt Collection

– Maintain a Professional image throughout communication
– Maintain amicable relations through good relations skills
– Listen to customer’s problems and try to understand

Timing Of Making Collection Calls

– Normal Hours
– Abnormal Hours

Investigate, Classify and Qualify Problem Accounts

– Current
– Overdue
– Doubtful

How To Prevent Current-Overdue-Dead Accounts

– Tight Monitoring
– Effective Reminding Systems
– Listen to customers problems
– Payment Schemes
– Legal Action (last resort)

Giving Of Incentives To Get Customers Pay Promptly

– Trend Watching
– Good motivational move for prompt payment

Getting Through Gatekeepers (Screeners)

– How to get rid of such screeners
– How to get straight to the debtors

Dealing With Difficult, Abusive, Threatening & Rude Debtors

– Control Emotions
– Mirror Image
– Maintain Professionalism

Understanding When A Debt Might Not Be Collectable

– Evaluate and discuss for solutions with superior
– Lay out pros and cons of Legal Action
– Make a final attempt to explain to debtors of the ageing consequences

Face To Face And Legal Action Should Be The Last Resort Action

– Pros and Cons of above actions

Scripts & Notices

– Always get ready for easy reference and attention
(i) Telephone
(ii) Face to Face
(iii) Last Resort Action

Monitoring Report

– Details of account
– Status of default
– Calls made during the month
– Comments / Further Action