Dear Business Buddy | #4
Dear Business Buddy,
Let’s talk about collections calls. Arguably- this is the least favorable phone call to make, but it is imperative to keeping consistent cash flow. Here’s a checklist for training someone in collection calls:
Delinquency Schedule (Follow Up Timeline)
Standard Operating Procedure
- Pulling Reports
- Automation Verbiage
- Sending Accounts to Collections
- Post Collections Payment Action Items
- Sample Collection Call Script
Payment Policy (I recommend having this in your manual with all the other policies)
- Payment Types Accepted
- Payment Plans
- Fees Associated
Collections Agency Contact
- Portal Link
Portal Username/Password
- Collections Contact Information
(Soft Skill Training) Roleplay Worksheet
- Focus on Enforcing Policies, tone, delivery, and confidence in conflict
Let’s put these documents to use. I see the collections process as three major phases, let’s review what needs to be covered with your trainee for each phase.
Review Phase: Show your trainee how to pull all the reports they will need to complete this task. You will likely have different filters or reports based on your Delinquency Schedule. These should also be in an SOP they can refer to for future reference; I’d recommend pointing out the steps as you complete them in person to draw the parallels on where to look if they are having trouble in the future.
Notice Phase: Based on your delinquency schedule, send out the texts, emails, statements, final notices, etc. Remaining should be the actual calls and sending of collections due accounts. To prep your trainee for the calls, make sure their priorities are aligned with you and with the delinquent account owner for success.
You are on the same team as the person you are calling, of course you want to avoid collections- it’s not good for them and it also costs you.
Be stern and empathetic. You understand that it’s also not fun to be getting this kind of call, but clear policy stated the repercussions of letting a balance go delinquent.
Have an olive branch. Depending on your policies, have the “olive branch” ready. This could be a payment plan, an extension on the due date, or a third party option.
Keep it factual. This was done, it cost this much, this much is due. Be sure to have policies in place for when objections come up- what’s the policy/procedure for if something was wrong? Or if the full deliverable wasn’t met? Or maybe if it wasn’t what they expected? Do you get signatures prior? These are all places to point for any objection that may arise, and keep you consistent.
Final Phase: Send the accounts due to collections on their way. Make sure you have a dedicated collection agency that you use, and make sure they align with your ethics. They will typically have different fees as well, and review the different options. Have an account made with this agency to be able to submit new accounts with ease, and also to follow up on previous accounts sent. Have these instructions detailed on your SOP.
Bonus notes: What are the policies for an account that has been sent to collections? What happens if you get a payment from them after they’ve been sent?
Did you read any of this and think, “I don’t have a ___ on this part of collections!” massage me! I’ll give you a rundown on whatever item you haven’t implemented yet.
Till next time!
Jadyn DePhi
Birdseye DBM Founder