Everybody has a different philosophy, but it most Credit Managers believe that a sale is not complete until full payment is collected.

As a salesperson, I have been trained to overcome sales objections to close a sale. This same information can be invaluable to the Credit Manager who is dealing with payment objections on a daily basis. In the sales arena, objections are handled with the prospect of forming a business relationship in mind. The Credit Manager handling payment objections does not need to worry about forming a "business" relationship. The Credit Manager should be concerned with how the relationship was formed, since most delays in payment are the result of what transpired between the sales representative and the customer. For example, your salesperson could have quoted incorrect prices, over-promised and under-delivered or left the customer with unanswered questions.

According to the Telephone Selling Report Newsletter, these are the primary reasons why customers object:

1. Sales rep lacked information. The sales rep didn't learn enough about the needs of the prospect, therefore made a product/service recommendation that the listener wasn't interested in.

2. Not explaining the benefits clearly or persuasively.The recommendation may be on target, but the rep doesn't make it sound appealing enough.

3. Prospect/customer doesn't understand the recommendation. The sales rep may have done everything according to the book, yet the objection still arises.

4. Prospect has a legitimate problem. They simply have a problem with your offer. For example, let's assume your prospect likes everything you've presented, but they just don't have the funds available.

5. Prospect is irrational, or lies to you. These reasons for objecting in the sales call are very similar to payment objections. We tend to categorize debtors into "Cannot pay" and "Will not pay". Those who "will not pay" have the resources but may have an objection to payment.

Your strategy should be to make the objection work for you. According to Sales Consultant Pam Lontos of Sales & Motivation Inc., there are several ways to make objections work for you. (I have modified these tips for the Credit Manager.)

1. See the objection as a question

Do not view the objection as an attack, because your natural tendency will be to defend. This puts the client and the Credit Manager in an attacker/defender relationship -- a difficult relationship in which to gain respect and trust. Put a question mark after that objection to payment. For example the client objection to payment is "Your product was faulty". You respond, "Our product was faulty?" Then you can ask further questions to determine just what they expected the product/service to accomplish. If there is a way to resolve the problem, ask them when you can expect payment.

2. Turn the objection into a reason for paying

If the Credit Manager can show the client that whatever the objection is, it is actually the reason to pay, he will effectively defuse the objection. For example, if the client says, "Your price is too high," the Credit Manager counters with, "That's the very reason you should buy. Our prices are an indication of the value you will be getting from our company. And you do want value for your dollar, don't you?" This causes the client to view price as a matter of value rather than a matter of dollars, and this makes his payment decision easier to make.

3. Smoke out all important objections

If you feel the client has some reason for not paying that he hasn't stated, simply ask him what it is. After he tells you, ask if that is the only reason he isn't paying. If he says "No," you continue asking until all the objections are out in the open. If he says that the objection you've uncovered is the only reason, you then ask if you were to eliminate the objection would he pay. This is a question that you need a "Yes" answer to in order to continue. Once you have the yes, the client is committed to paying if you successfully eliminate his objection.

4. Let the client answer his own objection

If the client cannot answer your question "Why?", then he has disproved himself. The client may flounder around a bit and then admit his objection was not really important. This is especially useful on general objections such as, "Your product is no good." Asking why will, at worst, narrow the objection down to something that is more easily handled and, at best, will get the client to admit that he doesn't really know why he said that.

5. Agree with the client about something

Find some point of agreement with your client before you start to answer an objection. This is the best known way to cushion your answer and render it unobjectionable. The client will not object as much if he knows that you understand his problem.

6. Denying the objection

If the objection is obviously untrue, you can smile and say, "Of course I don't believe that." For reasons known only to them, some clients will test the Credit Manager with some pretty outlandish objections. If you try to logically answer illogical objections, you will get sucked into a long, drawn-out and usually fruitless ordeal. Show the client that you have all your cards on the table and expect him to do the same.

7. Restate the objection in your own words before answering

Restating the objection serves three purposes. First, it lets the client know that you are listening to him. Second, it helps avoid misunderstandings and ensures that you answer the right question. Third, it gives you a little time to think about how you are going to answer.

8. To answer objections successfully, get into the right mental attitude -- and stay in it.

While collectors and sales people might view themselves as two very different types of people, they share a common goal "to motivate a customer to buy/pay for a product or service." Everyone involved in the sales-cycle (salesman, order entry, shipping, customer service, credit) affects how, when and if the customer will pay. Keep all these points of customer contact in mind when overcoming objections to payment.