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Late Payment FAQ

Inquire do not demand.

Structure Your Collection Call with Specific Goals: There are many goals you should

consider for yourself when making your collection call script:

To catch up with the customer - Before anything, you need to acknowledge theperson on the other end of the line. Show the customer you care. It's important to

never forget the relationship.

To establish the payment is late - You need to acknowledge the reason you are calling.Let them know their payment is past due.

To discover why the payment is late - Instead of simply listing off the facts to yourcustomer, ask them why the payment is late. Listening will help you better solve the

problem at hand.

To get a payment promise from the customer before you hang up - The call is uselessif you cannot get that promise from your customer. Do everything in your power to

make this happen.

Late Payment Issues

Find out why the customer is late and nail down a defined payment arrangement.

Inquire about the state of the customer's affairs: Is business slow? Why are payments late?

Customers operating in good faith will use this conversation as an opportunity to discuss their

inability to pay and try to negotiate a revised arrangement.

Before concluding the call, make sure you pinpoint a specific payment arrangementincluding

the amount to be paid, the deadline receipt, and the method of payment delivery. Ask your

customer to sign off on a document summarizing the revised arrangement to make sure you

are both on the same page.

I am concerned about your payment as it is now (x amount of) days late. As was agreedupon, the following will happen due to this delinquency

Is there anything I can do to assist you in making this payment? What can we do to speed up the process and keep the consequences to a minimum?

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Knowledge of the Debtor -

Causes of Delinquency

Circumstantial

Intellectual

Emotional

Intent to deceive

Be persistent.

Be understanding.

Be empathetic.

Steps for a Successful Collection Call Pre-Call Checklist

Check past payment record

Look at debtors responses to past efforts

Know whom youre calling

Know amount of debt

Determine bottom line, your desired outcome

Plan message, anticipate possible responses

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Steps for a Successful Collection Call

1. Identify the debtor

2. Identify yourself

3. Ask for resolution

4. Psychological pause

5. Determine the problem

6. Find the solution

7. Close the sale

8. Update your files

Probing and Appeals When Talking with Debtor

PROBE

Plan your Approach

Request terms for payment

Overcome Objections

Be in Control

Emphasize Urgency

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Negotiation - Close the Deal

Be sure debtor knows what to expect

Refer to the calendar

State terms of the agreement

Have debtor repeat terms, address, etc.

Follow-up with a phone call to the debtor if the payment is late