Debt Collection & Prevention of Overdue Outstanding Payments

1. The New Normal in Collections

• Adaptations by Lenders:
  • Understanding how lenders are evolving their strategies in response to changing economic conditions.
• Challenges for Collections Teams:
  • Identifying key obstacles faced by collections teams in today’s environment.

2. Effective Communication in Collections

• Essentials of a Collection Letter:
  • What information should be included and, equally important, what should be omitted.
• Dealing with Contact Information Challenges:
  • Strategies for handling outdated or missing contact details of debtors.
• Navigating Oral Contracts:
  • Understanding the difficulties posed by oral agreements and the need for written communication.

3. Leveraging Technology for Collections

• Utilizing Technology:
  • How technology can streamline the collections process and enhance efficiency.
• Connecting with Decision Makers:
  • Techniques for reaching the right contacts within debtor organizations.

4. Managing Receivables and Outstandings

• Identifying the Right Time to Collect:
  • Knowing when to take action and the appropriate steps to follow.
• Avoiding Common Collection Mistakes:
  • Common pitfalls to avoid in the collections process.
• Staying Organized:
  • Tools and strategies for managing workloads and keeping track of outstanding accounts.

5. Preventing Accounts from Becoming Past Due

• Billing Process Optimization:
  • Ensuring invoices are accurate and sent promptly.
• Billing Frequency and Reconciliation:
  • Best practices for maintaining billing cycles and reconciling accounts.
• Integrated Solutions:
  • Utilizing integrated billing and accounts receivable systems for efficiency.

6. Secrets of Successful Collectors

• Building Rapport with Debtors:
  • Techniques for establishing positive relationships to facilitate quicker payments.
• Maintaining Goodwill:
  • Strategies to preserve customer relationships while pursuing collections.
• Handling Dishonesty:
  • Approaches to take when debtors provide misleading information.

7. Special Situations in Collections

• Addressing Unique Challenges:
  • Strategies for dealing with situations like bad checks and partial payments.
• Settlement Negotiations:
  • Guidelines for determining when to settle debts for less than the total owed.

8. Advanced Collection Techniques

• Eliminating Barriers to Payment:
  • Identifying and addressing common excuses that delay payment.
• Effective Telephone Collection Techniques:
  • Developing assertiveness and negotiation skills for successful phone conversations.
• Pre-Delinquency and Post-Delinquency Strategies:
  • Campaigns and activities to manage accounts before and after they become delinquent.

9. Understanding Debtor Psychology

• Empathy in Collections:
  • Understanding why debtors struggle to pay and how to make the process easier for them.
• Staying Positive:
  • Techniques for maintaining a positive attitude in the face of challenging situations.
• When to Apply Pressure:
  • Knowing when to escalate collection efforts and when to take a softer approach.

10. Essential Follow-Up and Documentation

• Collection Letters:
  • Crafting effective collection letters that encourage payment without alienating customers.
• Importance of Follow-Ups:
  • Establishing a routine for following up on overdue accounts.
• Legal Considerations:
  • Understanding the legal implications of collection practices and documentation requirements.

11. Legal Issues in Debt Collection

• Harassment Laws:
  • What constitutes harassment in collections and how to avoid legal pitfalls.
• Working with Collection Agencies:
  • Best practices for collaborating with external agencies.
• Tracking Down Debtors:
  • Techniques for locating customers who have defaulted on payments.