How To Make a Collection Call

Collection Calls
Operating a business inevitably involves collection calls. These may be generated as a result of non-payment of an open account after net terms of payment have been exceeded. If this is the case, there are two options, depending on volume of unpaid balances.  One is to engage a professional collection agent if the volume is very high and unmanageable.  However, if the volume of unpaid balances is fairly manageable, it may be more cost-effective to set up a schedule of regular collection calling to collect unpaid invoices. 

A good way to begin is to allow your computer accounting software to prepare a report, usually referred to as an "aging" report.  This is basically a statement of how long overdue certain unpaid bills actually are.  Some computer accounting software will also create reports on specific clients with overdue payments owed to your company.  This type of report makes it easier to contact clients who have the most seriously overdue payments. When it's time to make collection calls, it's important to begin with clients with the least overdue amounts owed. Make the collection call as a friendly reminder. Sometimes this is done by e-mailing or faxing a "reminder" first and following with the collection call.

Focus on the Positive
With the more seriously overdue amounts, contacting the client directly as a "collection call" is usually the last resource after prior correspondence has failed.  Begin the contact with a friendly reminder of what is owed on a specific invoice and what services or product were included in their purchases.  Then, remind the client of the unpaid bill by asking if there has been some financial difficulty and if some type of payment arrangement would meet the client's needs to fulfill their obligation to pay the debt. This is especially important as a measure of good will to long-standing clients.  It's better to arrange a payment schedule than to lose the client permanently.  Particularly, if this has been a client that provided a lot of revenue to your company in the past. Generally, working out payment arrangements may include a small amount of monthly interest according to the negotiated terms of payment between client and vendor.

Keep the focus of the call positive. Collection calls should never be a form of harassment.  Maintain a polite demeanor.  If the client indicates inability to pay, it may be time to consider some form of legal assistance, though this should always be a last resort.