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How to handle the INEVITABLE.
by Katherine Rose, Jordano's Inc.
The inevitable happens...a customer runs up their balance and drags their feet in paying their account. During your phone call, always ask for payment in full. If there is hesitation by the customer, it usually means that he doesn't have that much ready cash available. If that is the case, ask the customer "How much are you short?" For example, if the amount due is $1,500, he may say that he's $500 short. If it is acceptable to you, ask the customer to send the $1000 now that he DOES have, then ask when you can expect to receive the remaining $500 balance.
Starting with a demand for payment of the entire amount first establishes the fact that you expect to be paid in full as soon as possible. Try to get the largest downpayment you can at the outset, followed by the least number of subsequent payments.
Suggesting a lesser amount from the beginning weakens your bargaining position and increases the chance that the customer will not follow through on the remaining payment plan.
[PRINTER FRIENDLY VERSION]
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CMA News Topic - 150
Suggestions and Advice in 150 Words
Suggested by Jim Fox, District Credit Manager, PDM Steel Service Centers "How about a feature each month where a credit manager shares a quick tip in credit or collections? Call it Just a Minute, or 150 (150 words or less) or Quick Tip or something like that?"
[FULL STORY]
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