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    2 Replies Latest reply on Apr 14, 2009 4:11 PM by amspcs

    AR Collection Letters & Phone Calls

    towergal2 Newbie
      Recently, due to downsizing, the individual who handled collections at the company for which I work was let go. As a result, the responsibility for collections fell to me. Since my experience does not include successful collections methods I am seeking the expertise of others. I understand the steps of the process, as there is a multitude of listings available on the net in that area. All the procedures list writing letters and making phone calls, but none of them give sound recommendations on verbage. I realize that a canned letter or phone call cannot fit all situations.

      Does anyone have some successful methods of communicating within the collection process that will not jeopardize the customer/vendor relationship that is vital to small business survival?
        • Re: AR Collection Letters & Phone Calls
          LUCKIEST Guide
          AR Collection Letters & Phone Calls, Welcome

          In my opinion, collection letters are a waste of time.

          the best way to collect A / R is to build a rapport, a relationship with the person in A / P who pays the bills.
          You call them first and introduce yourself. You find out if they have received your invoice or invoices and if the invoices have been approved for payment. GREAT. WHEN do you expect to process or pay there invoices??.

          Now you have a name, and a date. Mark your calendar.

          I have one more winning suggestion, BUT I do not know who or where you are. LUCKIEST
            • Re: AR Collection Letters & Phone Calls
              amspcs Ranger
              Luckiest makes good points. I'd like to add to that. The keys to any successful collection effort
              are (a) consistency and (b) timliness. Yes, you need to build a rapport with the person in payables.
              But you also need to let them know y ou are on top of things, not letting them slide. That means
              contacting them on a regular basis when the invoice hits 30 days, not 60 or 90 or more. And it means
              maintaining consistent contact on a regular insistent basis until the debt is paid, not letting it slide for weeks or months at a time between collection efforts. Soon, they'll learn that you mean business and they'll have to find someone else to play their payment games with. And above all, stay within the legal boundaries of your rights when making collection calls...know what you can do and what you can't.