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    Professional Debt Collection Skills
    Professional Debt Collection Skills
    Professional Debt Collection Skills
    Ebook147 pages1 hour

    Professional Debt Collection Skills

    By GERARD ASSEY

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    About this ebook

    "Credit Management is the heart of an organizations very survival". Many studies carried out on the growing sickness in industries and businesses reveal that BAD DEBT is the ONE major cause for bankruptcy.
    In a successful and vibrant economy, selling on credit has a number of advantages, especially when it generates a larger volume of business as well as widens one's market share. In fact, selling on credit often 'Makes' or 'Breaks' a sale and at most times gives one that edge over competition. Yet, one cannot afford to take this area of credit control so lightly, as too many companies everyday are mounting with debts that are increasingly doubtful of recovery.  The most precarious risk therefore to a company's profit on the sale is by way of interest expense from delayed collection. In essence, that is what credit management is all about and its objective can be said "to have the highest possible debtors (sales) for the shortest possible time (collection/profit)".
    Before the customer buys your goods both are interested - he in need of your goods and you in collecting the value of goods sold ie; the money; but once he gets the goods on credit, he is no more interested in fulfilling his obligation of paying. It's only you (for your money!).
    A company can have the finest product, a superb sales record and the most dedicated workforce, but if it does not get paid for its goods sold (.... and on time!) it will die. An unpaid debt is an unsecured loan being financed by your company (we can't even call it a loan, because on a loan one earns interest. We'll probably have to change the activity to 'charities'!) It means that many companies are prevented from achieving their full potential, because instead of using borrowed money to develop and grow their business, they now have to borrow money just to fund their own sales ledgers (in other words their customers).  When you no longer control your debtors, the cost of financing your company's cash flow is at the mercy of those very same debtors.
    If a business wishes to survive and prosper in today's economic environment it must pay close attention to all the factors which affect and takes care of its cash flow.
    Managing Credit and Collecting Money, on time, every time, therefore are the 2 most important and vital factors which decide the fate of any business!
    This book: 'Professional Debt Collection Skills' would essentially help you do just  that by covering the necessities in credit and cash flow management right from how bad debt occurs with methods to prevent the same, through the steps of an effective collection call (both on phone and face to face) with emphasis on the importance of documentation, reports, procedures for systematic follow-up; including series of email letters and general tips for chasing your money too, by encouraging proactive methods!
    From all of these objectives, you will notice that the primary objective of your collection effort is to bring the account current and, at the same time, to keep the account as a customer. Harassment by mail, in person or on telephone is generally not advisable and successful in collecting money or in retaining the account. But, by applying the proven techniques and preventive measures covered in this book, you can look forward to greater success in reducing your outstanding payments while yet retaining your customer, together with the added benefit of staying professional while also enjoying a pleasant, personal and rewarding experience.
    At the end, you would have learnt to manage credit, using planned preventive measures (the most vital part!), would have learnt to develop a complete systematic collection program, gained confidence in collecting money and have acquired several new ideas for immediate use, including taking back an Action Plan which can be put to immediate practice.

    LanguageEnglish
    PublisherGERARD ASSEY
    Release dateJun 21, 2021
    ISBN9798201698102
    Professional Debt Collection Skills

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      Book preview

      Professional Debt Collection Skills - GERARD ASSEY

      Professional

      Debt Collection

      Skills

      A Working Handbook on

      Effective Credit Control & Debt Collection

      Techniques & Skills

      By

      Gerard Assey

      © Copyright 2021 by Author

      Publishing Agency:

      Collection Skills

      19/18, Palli Arasan Street

      Anna Nagar East

      Chennai - 600 102

      All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means- electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without prior written permission from the author.

      Contents

      Dedication

      Foreword-1

      Foreword-2

      Praises, Raves & Reviews

      Introduction

      Part 1-How Bad Debt Occurs

      The Cash Flow Cycle

      The Slide to Insolvency

      Bad Debt- A Major Profit Leak!

      Part 2-How to Prevent Bad Debt

      Effective Credit Control- Preventive Measures

      Advantages of doing business on credit- To you as the Supplier

      Assessing the ‘True Cost’ of Giving Credit

      Various Stages in Credit Management

      Assess the Creditworthiness of Customers

      Your Invoice!

      Your Credit Policy

      Categorizing your Customers

      Coding/ Flagging customers

      Part 3 & 4-How to Collect your Money & Keep your Customer

      Having a Proper Collection Strategy

      Implementing the Collection Program

      Understanding the ‘Benefits of Paying on Time’

      Effectively using Email/ Letters for your Debt Collections

      Your Professional Image: Sell yourself before you sell anything else!

      Key Attributes of a Debt Collection Professional

      Steps to Professionally Collecting your Money!

      Pre- Call Planning

      The Collection Call

      Follow Up

      Key Factors for a Professional Collector to enable you stand out

      Monitoring Your Debts

      Handling turn downs/ rejections and keeping yourself motivated

      Post- Mortem: Evaluating your Call

      Role-playing a Collection Call

      Taking this Forward!

      About the Author

      Dedication

      This book: ‘Professional DEBT COLLECTION Skills’ is lovingly dedicated to ‘The Great Name, Above All Names, The God of the Impossible, The One and Only One’, Who has blessed me beyond imagination.

      A work of this nature can never be accomplished purely by the efforts of one person. It often is the culmination of a progressive learning process-firstly through my own experience in Sales and Management, through trial and error, along with the many people in my working career, coupled with the many courses, books/ videos/ CD’s that have also significantly impacted my life over the years.

      Consequently, some of the ideas involving the skills and techniques reflect the concepts that I have internalized which we use in our programs for over 20 years and prior to that also when managing organizations, by constantly adapting, modifying and improvising over the years.

      To all my clients, customers, sales personnel and associates that worked with me and taught me the numerous lessons- A BIG Thanks!

      I would be failing if I do not specially thank Mr. Suresh from ‘Gopalaiyer and Subramanian’-Our Chartered Accountants for over 20 years now, who tirelessly provided numerous inputs and suggestions to make this book what it is. I would also like to thank Mr. Sundar, Mr. Swaminathan and Mr. Sridhar who also were a great source of encouragement, by making necessary suggestions along the way. Thank you very much Mr. Somu, Mr. Parameswaran and Mr. Sivaraman for your valuable time in reviewing the book. Sincerely appreciate.   

      And finally to you my reader- Thank you for obtaining this copy! I have done my part. Now it is your turn to apply these concepts by putting it to practice!

      I wish you all success-always!

      Foreword-1

      ‘Professional Debt Collection Skills’ is a very timely topic for a book.

      The world is reeling under the impact of a pandemic and businesses across the globe are not spared from its aftermath. While the stakeholders realize that they have very little control over their sales and profits, they are unanimous about one thing- protecting their cash reserves.

      While businesses are shrinking and consumers are on a ‘cash- save’ mode by reduced spending and consumption, it is imperative that companies prioritize their efforts towards conserving and improving the cash flow. The term ‘Cash is King’ holds true more, today than ever before and the best place to start is to collect your own money.

      Gerard’s inputs for the book are his years of experience in various industries where collections are always a challenge. You are at the mercy of the customer once the service is rendered as you hold no security. In such a situation it is only organizations with highly skilled collection teams which come up as winners. That is what this book strives to make each one of its readers.

      The book focuses on strengthening the basic skills required to ensure that no debt is left uncollected. It teaches you to be proactive and make a good sale by pre-empting the causes of bad debts. In a simple and lucid language the book reinforces the fact that while it is very important to collect your debt, it is even more important to retain your customer. By the time you finish reading the book, you realize that with the right skills you can always strike a right balance between collections and customer retention.

      Would strongly recommend that this book, be made a part of any sales training program as a sale is not complete till you have collected your money.

      A.M. Sundar

      (CFO & Company Secretary)

      Snowman Logistics Limited

      Foreword-2

      The author Gerard Assey has brought to bear upon this book Professional Debt Collection Skills his expertise and experience of so many years, both theoretically and practically.

      What stands out is the simplicity of expression which makes the entire book intelligible and perspicuous. This book will be an important tool for all those who are in business and those who are employed in collection/ sales.

      The author has initially dwelt on the disastrous aspect of allowing debts to become bad, the accumulation of which might inexorably lead to its demise. While this aspect is for those who own the business, he nicely segues and transitions from the Owner’s Role to the Collectors’ Role and finally concludes saying, rather indubitably the business of collection is that of everyone, right from the top most person to the dispatch clerk/peon, thereby unequivocally driving home the point that collection is an integral and inalienable aspect of any business, if it wants to thrive.

      The various aspects of collection have been nicely dealt with by giving tips and also motivating the reader to think for himself and add points. Though all chapters are lucid, my appreciation is specially for chapters dealing with handling customers who throw a fit, how to prepare while speaking on phone and on those chapters dealing with conducting role plays.

      Overall, it is a good ready reckoner regarding collection and exhibits a bravura on the part of the author.

      Suresh K R 

      (Partner)

      Gopalaiyer and Subramanian

      Chartered Accountants

      (Not to us, O LORD, not to us, But to Your name give glory...Ps 115.1)

      Praises, Raves & Reviews                                                                                                                      for                                                                                                                                                    Professional Debt Collection Skills

      Dear Gerard,

      Congratulations on your 26th successful book! It is a wonderful

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