It goes without saying that communication is fundamental and vital to maintaining a profitable relationship with your clients. When it comes to retrieving money owed to you for products or services provided, basic to all businesses are collection calls and collection letters. In this article we’re offering a few tips on both.

Tips on making collection calls

  1. Begin by calling the customers with the oldest and highest balances. Customers with older balances might be missing invoices, purchase order numbers or service approvals. Customers with higher balances might have a longer period of time between paying invoices.
  2. When calling, ask to speak with the individual responsible for accounts payable. Always keep a record of their first and last name, their phone and fax number, and even an email address.  Make sure to be professional yet friendly. Finally, set a date for when payment can be expected.
  3. If payment hasn’t arrived by the agreed to date, follow up with a phone call on that very day. If you learn that the customer is having difficulty making payment, offer alternate payment terms that are mutually convenient.

Tips on writing and sending collection letters

  1. Only include information that’s pertinent to the debt you’re trying to collect. The details you want to include would be the amount of the debt, the date of invoice, and original due date.
  2. Don’t go into any lengthy discourse. Be concise and cogent, using the first sentence to inform your customer of the purpose of your letter.
  3. Address your letters directly to the individual responsible for their company’s accounts payables.
  4. Always keep in mind that you may not be aware of the circumstances behind why your customer hasn’t paid you.  Encourage them to pay so as to maintain credit terms, or motivate them to take action with a follow-up phone call to kindly discuss their situation.
  5. Be professional. Maintain a respectful tone that reflects a desire not only to receive payment due, but also to maintain a good relationship with your clients.

Always remember that your purpose may be to collect the debt, but the effort is better facilitated by maintaining a genuinely cordial demeanor when making calls or sending letters. Overall, you want your money, but be sure to make it a priority to maintain a healthy business relationship.

The Jayaram Law Group routinely and successfully assists its clients in their business-to-business (b2b) collection needs.  We take pride in obtaining payment on accounts receivables without fracturing critical business relationships or engaging in time-consuming and costly litigation efforts.

If you need business debt collection services conducted in a professional manner, contact our B2B (business-to-business) debt collection law firm by calling 312.454.2859 or visiting www.jayaramlaw.com.