10 Best Practices That Improve Credit & Collections

Review Customer Credit Ratings. ...

Set Goals for Uncollected A/R. ...

Rate Your Customers. ...

Send Invoices Promptly. ...

Prominently Feature Terms and Due Date on the Invoice. ...

Encourage Customers to Accept Invoices Electronically. ...

Offer Several Payment Options.

17 Tips to Become a Successful Debt Collection Agent

Improve Your Listening Skills.

First and foremost, you must improve your listening skill. ...

Manage Emotions. ...

Take Time. ...

Do Your Research. ...

Use technology and productivity tools. ...

Remain Realistic. ...

Follow a Clear and Concise Approach. ...

Be Persistent.
17 Tips to Become a Successful Debt Collection Agent
1. Improve Your Listening Skills
First and foremost, you must improve your listening skill. Of course, you are the best tracer,
investigator, and have exceptional skills to locate debtors across regions. But when you contact
the debtors, it is crucial to listen to their concerns. When you call the debtor and state the
reason for the call, wait for them to answer. Even if they take a long pause, let them break the
silence. There is always a story to tell. Let them tell it. Therefore, improve your listening skills.

2. Manage Emotions
It is natural for debtors to get worried when you call them. They might cry, yell, and hang up
your call. However, when they tell you their story and the reason they cannot pay, show
compassion. You must become a bit more sensitive. You have to manage yours as well as their
emotions. People might have a genuine reason for a default or a delay, especially first-time
defaulters who hold an otherwise good repayment history. Rather than getting angry, offer a
solution for debt repayment. For instance – different options for payments.

3. Take Time
Debt collection agents often make the mistake of rushing to conclusions. Rather than running
through your phone call list, take your time and speak slowly. Speaking in a well-paced voice
will allow the debtor to understand your message clearly. And when your messages are clear,
your performance will also improve. That is, you will be able to influence your debtor for
repayment or Promise to Pay (PTP).

4. Do Your Research
Before you call the debtor, do some initial research about the account. Get to know the payment
history, the due amount, among other things. When you know the facts, you are in a better
position to handle the debtor. Moreover, you can also leverage your research during the
negotiation process. For instance, a debtor cannot claim that he/she is broke when you see they
bought a new car on Facebook.

5. Use technology and productivity tools

Software solutions like Debt Collection CRM is an efficient tool to digitize the recovery process –
from borrower segmentation to debt recovery prediction and guided team actions. It helps you
prioritize cases, plan/schedule meetings, automate communications, and reminds you to contact
debtors when the Days-Past-Due (DPD) is close.

6. Remain Realistic
You will come across debtors who cannot make repayment. Being realistic will help you
understand the situation, thus, allowing you to find a suitable solution for the debtor.

7. Follow a Clear and Concise Approach

There is no good in deceiving the debtor. Therefore, try to maintain a clear and concise
approach. Spell out the collection terms clearly and concisely for the debtor. Being transparent
with debtor is the best way forward.

8. Be Persistent
Being persistent in your approach will help you become a great debt collection agent. Do not
give up if the debtor refuses to pay, hangs upon you, or gets rude at you. Therefore,
consistently follow with the debtor and try different methods. You never know which recovery
method will work.

9. Maintain Professionalism
It is essential to maintain a professional approach when you are working as a collection agent.
You cannot get into unnecessary arguments and confrontations with the debtor. The customer
might try to push you into the argument and drive your attention away from the objective. But
you should stick to your goals without getting flustered with customer arguments.

10. Understand Laws and Regulations

A debt collection agent needs to understand and comply with the laws and the regulations. You
must follow the rules made by FDCPA to ensure that you are working within the law. If you do
not follow the rules, you might find yourself dealing with several legal issues. Therefore, stay
within the legitimate limits while dealing with the debtor.

11. Negotiate Clearly

When you are negotiating, maintain a thoughtful and efficient approach. You should let the
debtors know what you expect from them. Also, let them know the arrangements as part of the
negotiation process. In other words, let them know how the procedure will work going forward.
Additionally, do not try to trick the debtor during the negotiation.
12. Ask for Comments
Once you clearly state the repayment deal, ask for comments. It will tell you how receptive the
debtor is towards the potential solution. Ask them if they think it is an acceptable solution or not.

13. Confirm the Deal in Writing

As soon as you reach a new deal with the debtor, make sure you put that in writing. Put down all
the details of the repayment solution and ask the debtor to sign the document. It will ensure that
they understand and agree with the deal.

14. Explain the Consequences

Once you sign the deal with the debtor, ensure that they understand the consequences of not
paying on-time. It will ensure that the debtor is aware of the situation and will live up to the
agreement.

15. Follow Up
After agreeing to the repayment plan, follow up to ensure that the debtor is making payments
on-time. Following-up with the debtor is one of the traits of a successful debt collection agent. If
the customer is not paying on-time, take necessary actions immediately.

16. Document everything and maintain regular updates

Record your interactions with the debtor. Also, note these interactions so that if a debtor does
not pay even after he promises to pay, the lender might need to send field agents to contact
him.

17. Help Your Colleagues

Whenever you can, offer some debt collection tricks and tips to your colleagues. You are only
successful if your team is successful. Moreover, there is no better joy than the joy of sharing
knowledge and wisdom.