How to get paid within 30days
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The document provides guidelines on effective cash flow management and debt recovery through customer service communication, emphasizing the importance of empathy and relationship building. It details a structured approach to initiate calls with customers about late payments, the importance of understanding their circumstances, and establishing payment commitments. Additionally, it outlines key steps in creating a credit policy and emphasizes persistence and respect in the collection process.
How to get paid within 30days
- 1. © The Persuader How to get paid in 30 days without using a baseball bat? Cash Flow Management
- 2. © The Persuader First control your emotions…. How do you feel when someone does not pay? • Friendless • Aggressive • Indignant • Crying • Betrayed • and
- 3. © The Persuader You may feel frustrated
- 4. © The Persuader Or Angry?
- 5. © The Persuader Beliefs Values Attitudes! You are making a Customer Service Call not a Collection call! Don’t get ANGRY! Get paid!
- 6. © The Persuader Don’t ignore the issue by Using the head in the sand approach
- 7. © The Persuader Or focusing on work…
- 8. © The Persuader Or by being too busy…
- 9. © The Persuader In the past… How we use to collect…
- 10. © The Persuader Rough n ready…
- 11. © The Persuader Pay up!
- 12. © The Persuader And now? Definition of credit Customer Service Relationships Empathy Determination Interpersonal skills Trust
- 13. © The Persuader Customer Service
- 14. © The Persuader Relationships! Initiating and Developing rapport
- 17. © The Persuader Interpersonal Skills Its all about effective communication
- 18. © The Persuader Trust A Promise to pay! 98% of Customers want to meet their commitments… They just need your help!
- 19. © The Persuader Late payers need a call! Innocent until proven guilty ET phoned home… he did not write letters!
- 20. © The Persuader First Call Technique The most effective of early-stage debt recovery tactics is surprisingly simple - a customer service call made 7-10 days after the first invoice has been sent. Here’s how: Focus on your customer. Are they completely satisfied with the product or service you have provided? If the answer is no. You now have the chance to resolve the issue and secure your payment. If the answer is yes. Now you can confirm they received your invoice, and fax or email another copy if they didn’t received the original.
- 21. © The Persuader Make Effective Calls
- 22. © The Persuader 3 Essential Elements 1. When they will pay? 2. How they will pay? 3. What amount are they paying? Apply these 3 elements and you are successfully managing your cash flow and minimising your risk!
- 23. © The Persuader Make Effective Calls • Establish and agree on the debt • Obtain/agree payment commitment Value - How - When • Where necessary quote terms • When the debt is in query establish exactly what the query is • If the customer is complaining, clarify who and what the complaint is about. Forward on to the right person and follow-up. Take ownership
- 24. © The Persuader Reasons for Non Payment Can’t - Cash Flow / No Money Won’t - Payment Terms / Relationship Issue Shouldn’t - Legitimate query eg. copy invoice.
- 25. © The Persuader Can’t pay….
- 26. © The Persuader Cashflow or no money Establish whether the problem is Cash Flow or No Money Ask questions as to why they Can’t Pay • Are they waiting on money? • If so will it enable them to pay your debt in full ? If the answer is -YES- the problem is Cash Flow • Establish when their debt is to be paid. • Arrange payment schedules. If the answer is -NO- the problem is that they have No Money.
- 27. © The Persuader Won’t pay…
- 28. © The Persuader Has the cash but won’t pay • Establish the reasons for the relationship issues • If necessary arrange customer meeting • Involve the necessary people e.g. Sales/Admin • Check out any supporting evidence • If customer issues valid - Escalate to have resolved.
- 29. © The Persuader Shouldn’t • Establish exact detail of query • Take complete ownership • Establish what is needed to release payment or resolve issue • Clarify what you can do • Commit when you will call them back • Obtain support/escalation when necessary • Document Details / Actions of query • Agree timescales for resolution of query. Keep going until it is fixed
- 30. © The Persuader Do you have a credit policy? a. Invoice on date candidate accepts the role b. Payment terms 14 days from date of invoice c. First customer service call - 7-10 days d. Second phone call is at 16 days to f/up and firm payment arrangement
- 31. © The Persuader Credit policy cont… e. Check payment was made when agreed if not call again f. At 45 days I send a letter of demand and no further work will be done g. After 55 days I send it off to a Debt Collection Agency
- 32. © The Persuader Other factors to consider…. • What are your payment terms? • Is your Standard Terms and Conditions an agreement? • When do you start your collection process? • Are you helpless to collect off large customers? • Are your invoices clear and concise? • If you don’t get paid on time how do you feed yourself and your family or pay your bills?
- 33. © The Persuader Golden rules of effective collecting! Make a call and get a valid arrangement the first time! Treat the customer with respect, Always! Believe in helping the customer! If there is any issue speak to the decision maker! Do not procrastinate! Make your diary notes without exception! Be persistent Follow up, follow up follow up
- 34. © The Persuader What is your biggest challenge?
- 35. © The Persuader Thought for today… If you think nobody cares if you are alive, Try missing a couple of car payments!