The Best Handful of Tips 87 – Collecting  Debts:

Collecting debts can be difficult and often messy.  The collection process should go through distinct stages. Always put your requests in formal letters and keep copies.

The first two letters you send should politely assume the customer has overlooked payment and will pay when reminded. The third letter can ask for an explanation of the circumstances that prevent payment. If there is no satisfactory explanation it is time to take further action.

The five best tips to help you collect debts

1. The reminder letter

First assume the customer has overlooked the bill. Bills are easy to overlook and forget.

“This is a friendly reminder that your account is overdue have you forgotten to pay?”

2. Stronger reminder

Assume the customer has overlooked paying. Be polite and reassure them that credit is still available.

“You may have already paid. If so, we thank you. We look forward to an early response. ” 

3. Enquiry stage

Assume there is a good reason why the customer has not paid. Is the amount in dispute?

            Try appealing to their pride so they avoid the embarrassment of a bad credit record.

“Please contact us immediately if you find you are unable to pay. Together we should be able to work something out.”

4. Urgent stage

Be demanding and impress on the customer the seriousness of the situation.

Point out what the customer has to lose if the bill is not paid. Imply the possibility of legal action or the problem being referred to a debt-collecting agency.

5. Legal action

If the customer has refused to co-operate, put the claim into the hands of the small claims court for a hearing.

            From your records you will be able to supply copies of all your communications to support your claim.

            Keep your demands brief, to the point, factual and easy to read.

-Geoffrey Moss

“Let all things be done decently and in order.”

SOURCE: “Persuasive Ways” published by Moss Associates Ltd, New Zealand and in Chinese by Shanghai People’s Publishing House and as “Secrets of Persuasion” by Cengage Learning Asia. Also available as an e-book from Amazon.com.