Thinking Outside the Box: Collecting From a Delinquent Debtor.

How Do You Measure Success?

How do you measure collection success? We all would agree the ultimate measure of collection success is money in the bank. Several other indicators are finding a debtor who is delinquent on their account, attaining a hard fought judgment in your favor, seizing an asset and recovering product that can be resold.

Collections success can be achieved in many ways. One innovative way to achieve collections success is to periodically change your strategies. Not only will this help you collect on more accounts, but it will also help you enjoy your work more, and it will show the customers that they are important. Boiler room collections are dead. Today's success is achieved by using customer service, marketing, creative thinking, active listening and a great deal of tenacity in negotiation.

A Highly Effective Collector (HEC) is someone who knows there are many different strategies and tactics to utilize when dealing with a delinquent account. An HEC is also able to assess which would be the most productive method to use in any particular stage of the collection process and then pursue it. But, there are also regular habits that any HEC has to possess to assure success.

The Seven Habits of a Highly Effective Collector (HEC)

1. Follow-up--Follow-up is very important to highly effective collecting. Effective collectors track promises made to them and made by them, and give everything a time line for follow-up. They know that if you do not follow-up and follow through, the debtor will take advantage, and the collector will lose their power.

2. Power Phone Usage--HECs always play on their own turf. This means they are the one initiating the conversation and not responding to questions. If you are the one who called, you have the power of preparation and information. HECs do not sabotage themselves by calling unprepared. To prepare for a collection call, you need the name of the proper contact, amount owed, copies of invoice/proof of delivery, and an idea of the goal you want. Your goal can be any number of things, promise of payment, confirming receipt of invoice, payment plan, etc.