Aira Denise C.

Tecuico Credit & Collection

3FM-2 SAT 12:00PM-3:00PM

Module 3 Assignment
Identify at least 5 best practices in collecting money. Explain each of them in detail.
1. Using Snail Mail
Letters are the traditional collection tool. Many professionals don’t like them
because they claim they are ineffective. They claim that the customer recognizes
the mailings and often doesn’t even open the letter. If the customer does open the
letter, they often discard it without reading more than the first few lines. Worse, the
customer gets to know your collection letter cycle and how long it can go before
you will cut them off.

2. Using the Fax Machine for Collections

The development of the fax machine put a new tool in the hands of the collection
professional. It gives them the ability to put a collection letter or invoice in the hands
of the customer almost instantaneously. To make the best use of this tool, make
sure the fax is addressed to the appropriate party. Sending a collection letter,
addressed to no one in particular, is a waste of time and effort. The fax will sit in
the fax machine and eventually be thrown out.

3. Using E-mail to Enhance Collection Results

E-mail is a wonderful way to communicate with others. If used judiciously, it can
work wonders. Many of the suggestions that relate to snail mail are appropriate to
e-mail. One of the dirty little secrets in corporate America is that a good number of
professionals don’t read most of their e-mail—so don’t rely on this wonderful
invention to solve 100% of your collection problems.

4. Phoning for Dollars

Many collection professionals believe that the phone is the best way to collect.
Dialing for dollars is the way most companies chase their delinquent customers.
Obviously, good phone etiquette is required.

5. Getting the Salesforce to Help with the Collection Efforts

Even though most salespeople are loath to assist in collection efforts, some do
and some do quite successfully. Often, the level of their success depends on how
closely their compensation is tied to the collection efforts and accounts receivable
aging.

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