In Focus Commercial Credit


Keeping the peace in your community


Three credit-management basics will help you to be paid on time and maintain good relationships


Krista T. Walsh President, KC Collect! krista@kccollect.com


In small communities, it is difficult not to take receivables management personally. Having a hard-nosed, or tough, approach


to collections does not always yield the best, or most desirable results. Such attitudes can make a person less effective and decrease the chances of payment. Business leaders must be careful not to


offend or threaten their customers, as client relationships are an important part of building and maintaining a business in any community. Occasionally, a collector must be stern


when explaining the current situation, but the most effective collectors never bully, threaten, or raise their voice. Instead, they clearly explain the account


situation, the potential actions, and the consequences that may follow, if payment is not received. Keep in mind the following traits, so as to


keep your customer on side while still getting your overdue accounts paid.


Patience Not everyone has the means to pay their past-due account in its entirety. Most debtors are going to need your expert guidance in order to properly budget their existing debt. You have to be patient with them, as you


conceive an appropriate payment plan that is going to lessen their debt load and result in payment.


Persistence The ‘out of sight, out of mind’ mentality is quite common when attempting to collect debt. However, if you keep persisting, you


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Occasionally, a collector must be stern when explaining the current situation, but the most effective collectors never bully, threaten, or raise their voice


will have a better chance of being paid when the money becomes available. Keeping the account fresh in the memory is an important tool to recovering debt.


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Empathy Being sensitive to a debtor’s current situation will most likely help to get paid. Most people have the best intentions to


repay, but, due to unforeseen circumstances, have fallen behind on their bills. Working together to resolve the debt will


instill proper money management, and better the individual for future financial transactions.


Conclusion Combining these three traits of patience, persistence, and empathy, will usually result in fewer receivables for your company, a reduction in your stress, as well as an increase in your cashflow. CCR


March 2018


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