The Art of Diplomacy

I have been in the collection industry for many years and have had the opportunity to work with a myriad of companies. These experiences have enabled me to witness firsthand what methods are successful in collecting overdue accounts.

I have worked with several companies in the waste and recycling industry, and one common problem I see among most owners and operators is trying to manage a small business with an even smaller staff.

When presented with financial challenges, most businesses want to handle matters in-house and feel they cannot afford outside help from a collection agency. A few solid tips derived from methods employed by successful debt recovery groups can be easily applied to your waste and recycling businesses’ accounts receivables procedures and may quickly recover monies owed while retaining customers.
 
HIRE PROFESSIONALS
Collecting overdue accounts is a tricky area that requires a great deal of tact. Whenever possible, try to hire individuals with a professional mindset who have strong communication skills and a desire to be successful. If your internal team is already in place, make time to educate and motivate current staff members to be as professional as possible, to adhere to a core set of values and to remain extremely respectful of customers at all times.

For an example of the methods and attitudes an employee may use to produce the best debt recovery results, view a video of Al Scott, an 80-year-old debt collector, at www.youtube.com/americanprofit#p/u/9/PbtRoIFq5Tk.

A group of staff members with values and ethics will improve current and future collections as well as client relations. A good team approaches customers respectfully and resolves difficult debt collection situations in an expedient manner.

GOOD CUSTOMER RELATIONS IN TOUGH TIMES
The volatile economy has demonstrated that anyone can fall on tough times. The manner in which customers are treated during challenging situations can determine their loyalty to a vendor. A respectable collection agency approaches clients with diplomacy and courtesy, which produces more successful results.
Working with your internal team to develop a respectful approach will improve relations with clients who have delinquent accounts along with all clients who contact your business. This approach makes customers feel you are in tune with their predicaments and helps preserve relationships with current customers as well as strengthens your company’s reputation in the community, which can lead to future clients. When your internal team is respectful, loyal customers are appreciative and more likely to try to settle matters quickly.

INVOICE EARLY AND OFTEN
Once you make a few alterations to your staff’s collection and operation methods, another technique you should employ in-house is to invoice early on overdue accounts. Collection agencies who retrieve overdue funds quickly often get in the game as soon as 30 days past due, contacting customers who may be late on their payments.
When your business sends an overdue statement early, it is likely to reach customers before other companies’ invoices, creating positive end results. People find a statement sent in the mail to be a non-threatening approach to a potentially volatile situation, unlike phone calls, which can be misinterpreted. This technique can make the collection process a little smoother.

RESOLVING STUBBORN ACCOUNTS
Taking time to review your internal collection practices and making a few alterations can produce great results. I have seen the greatest success when companies employ early intervention in tandem with a strong focus on ethics and diplomacy. These methods typically preserve business relationships, however there are times where regardless of your approach, accounts may remain unpaid. These situations can challenge your staff and threaten your client relationships. At this time, it may be wise to find an affordable and reputable collection agency to assist your business.

Even on a tight budget, finding collection help from an agency can be feasible. A quick checklist of important traits to look for in a collection company may help you find the right fit for your recycling company:

• Affordability—When your waste and recycling business is struggling financially, hiring a collection agency seems out of the question. However, some debt recovery teams offer a flat-fee system where you may pay as little as $10 to $15 per account, regardless of the amount being collected.

• Experience—A solid collection team will have collection experience in your industry and other areas, which contributes to achieving higher recovery rates from overdue accounts. Their knowledge of specific industries can help these professionals determine the best and most expedient course of action.

• Personal Attention—A collection specialist can free up your current staff to concentrate on what they were hired to do while devoting time to taking the best course of action to retrieve monies owed. This also can help the collection process feel less personal for business owners and customers. 

• Access to Accounts—A reputable collection agency will be equipped with technology that works to streamline its efforts and keeps you, its client, in the loop as well. Look for a debt recovery team that offers your recycling business access to your accounts online so you may manage your company at times that meet your schedule.

Your company can make many changes internally and externally to improve your accounts receivables process. Employing tactics used by successful collection agencies may be all your business needs to get back on a solid financial track. That, coupled with help from a reputable collection agency on stubborn accounts, can keep your company’s bottom line healthy and business strong in any economy.