5 tips for telephone debt management

Managing debtors through phone contact is usually not the most enjoyable task. Yet, it is a crucial part of successful business dealings. Its importance cannot be overstated, as receiving payments is essential for validating all efforts within your company, from sales to shipping.

When dealing with a hesitant debtor on the phone, claiming not to have received the invoice, promising to transfer the money soon, or stating they never received the products, it is essential to act professionally. Here are five valuable tips from experts to make these phone conversations more effective:

1. Automate your reminders

When sending invoices, it is crucial to clearly communicate the agreed-upon payment terms. A strict and consistent policy regarding the automation of reminders strengthens your position when telephone reminders are necessary. Implementing automated first and second reminders, three days after the due date, contributes to efficient debt management.

2. Avoid arguments

Avoiding arguments about the truthfulness of customer excuses is crucial. Maintaining a positive customer relationship is paramount. There is no need to dispute the validity of excuses; instead, it is more effective to motivate the customer to make timely payments. Focus on collaboration rather than confrontation.

3. Be well-prepared

When answering the phone, it is crucial to have all relevant information at your fingertips. This prevents surprises when facing objections and allows you to respond quickly and clearly to questions about order numbers, amounts, and payment terms. Good preparation contributes to confident and targeted communication.

4. Talk to the right person

To minimize delays, it is essential to have direct contact with the right person. Avoid situations where messages are relayed through third parties, as this increases the chance of unnecessary delays. Direct communication with the involved party minimizes the chance of misunderstandings and speeds up the debt collection process.

Tip: Order a credit report in advance so that you can assess the current creditworthiness. Knowing the creditworthiness can help determine the position of the conversation.

5.     Avoid blame and stay in touch

While late payment by a customer has financial consequences, maintaining a good relationship is of great importance. Stay in communication with the customer to understand the actual reasons for the delinquency. This insight can be crucial for adjusting future deliveries, invoicing, and marketing efforts to minimize any damage.

By applying these five tips, you can optimize telephone debt management and increase the efficiency of your financial processes.