Question

Trying to collect money from someone can be a difficult task. Discuss some procedures and options available for collecting delinquent accounts? Which one do you think would work best for you? Why?

Answer 1

The 3 Simplest Ways to Get Them Paid Fast:

1) Follow up promptly and persistently – How are your customers supposed to remember their payment is late if you don’t remind them? You’d like to think they could remember when they have a payment due. However, these accounts are delinquent for a reason. Maybe they did just simply forget. Remind them. Problem solved. Maybe they are trying to extend their payment date for their own cash flow needs. Just because they can’t properly manage their cash flow doesn’t mean you should allow it to negatively affect yours. Remind them (again and again until you get paid). Why should you not let up? Because even if they do remember they have a payment due, if you stay on top of them it will let them know how serious you are about your payment. A customer won’t mess around when they see how aware you are of delinquent accounts. This communication will help keep you on top of their payment priority list.

2) Use effective language – Words are a powerful thing. Don’t forget this when contacting your customers about delinquent accounts. Be strategic and cautious in the wording you use when first notifying your customers that their payment is late. A study by Freshbooks shows that just by being polite, you can increase your chances of getting paid by 5%. A simple please and thank you can go a long way. However, not all your customers are in the same boat. Some are paying late for the first time ever and others are notoriously delinquent accounts. That’s why you need to stray away from generic payment reminder letters. You must craft these letters to fit the situation. Utilize these collection letter templates to help remind customers no matter the payment situation. When you reach out to remind customers, mind your manners and be sure to consider the situation before mailing.

3) Make it easy to pay – If you’re trying to get these delinquent accounts in as soon as possible, think about what will help with speed. The number one solution to any situation like this is to make it easy. The easier you make it for someone to do something, the more likely (and FASTER) they will. How do you make paying more convenient for your customers? Offer them options. Don’t allow checks to be the only way they can get money to you. Make online payments available. Accept credit cards and direct debit. By providing your customers with options, you’re giving yourself a huge advantage. They’ll be able to pay you faster because they literally have a speedier way of doing so. Not to mention, the convenience helps keep them from pushing your payment to the side.

I always follow the 3rd option make it easy to pay, because delinquent accounts may be facing some problems for paying, so we have to be in their own shoes and should understand, should give some easy options according to their financial situation.