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Michelle Dunn
Published 2009
Do you already have a business?
Do you have slow paying customers?
Do you want to make more money easily?
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Then you need to Become the Squeaky Wheel! This Credit and Collections Guide for Everyone is loaded full of tools that will help you:
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Improve your collection techniques and procedures
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Learn how to read a credit report
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Learn how to extend credit
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Learn Federal and State credit laws
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Learn about interest and late fees
And most importantly, learn how to be in control of your accounts receivable and not let it control you. The clear benefit of this book is to help you obtain and retain good paying customers, therefore enabling you to spend more time at what you are good at and increase your cash flow. This great jam- packed book includes all the laws you need to know when collecting money.
This is a valuable Manual you will want to keep on your desk and refer back to time after time.
have been in the credit and collections field since 1987. I never aspired to be a debt collector, I just kind of fell into it. I was living in RI and moved to NH and went out looking for an office job. I found a job at a company that makes cedar shoe trees, as an Accounts Receivable clerk. I then took over the Collections aspect of the job and found I liked it and did a great job at it. I have been doing it ever since. One of the things I like about collection work is that you can see your results. I also like making people happy and one of the things that make people happy is receiving money. So I make my collection calls and send my letters and money comes in and everyone is happy, except maybe the person who had to send the money
I have been a Credit Manager are quite a few different companies and written credit and collection policies for many companies. I have tried to give you an example of some of those policies in this book. Some of the information may not work with your specific line of business but there is something for everyone in this book.
This can be used as a guide for your own credit policy. You can use parts of this policy or adjust any parts of it to fit your business. You can also just use parts of it or all of it.
I have included a procedure on what to do when you get a new customer, how to extend credit to them, how to read a credit report if you pull reports on new customers. What to do once you have credit approved customers and they don’t pay, putting them on hold and procedures you can follow as well as collection call procedures and examples of conversations you might have. Credit card procedures for automatic charge accounts, information on COD payments received from shippers, what to do with all the small balance accounts you may have, what to do when you get an NSF check, Dunning letters procedures and examples of many letters you might be able to use. Information on payment plans, placing accounts with a collection agency and how to place them. How to write off bad debt, what you need to have on your credit applications, and examples of credit applications.
Also included are Federal credit laws you must follow. Information on doing business online, electronic contracts and electronic signatures. I have also included information on state laws regarding adding interest and/or late fees.
Many businesses do not have a credit and collections policy. The reasons for this could be that the business owner is afraid that asking for the money that is owed to them will make their customer mad and he will go somewhere else with his business. If they are not paying you, is this a bad thing? Why waste your time chasing money when you can have good paying customers. There will always be a few customers who are payment problems but the fewer the better and you have some control over that.
Also, many business owners do not know how to get the customer to pay or don’t know what they can legally do to obtain payment. This book will help you get paid on time and therefore save you money and help you to make more money.
The longer you don’t do anything about getting paid, the chances you will get paid are much less. This book is to help you, the business owner to keep your customers, and get paid. Having a credit and collections policy sets a positive credit tone for your business. It also lets potential customers know that you mean business!
Don’t let your slow paying customers control you, it’s up to you to take the wheel and drive.
Some FAQ that are covered in chapters of the book:
How common is it that there is consistently problems collecting money from customers?
Some business owners, especially new business owners are so eager for a sale that they don’t document or discuss payment, then they don’t want to offend the customer by asking for their money.
Is it worth it for a small business to attempt to go after the money due to them?
It depends on the amount of the bill and what information you already have on the customer. Such as contact information so you can get a hold of them or even take them to small claims court.
What legal issues are involved with collecting your money?
You will have to follow the FDCPA, Fair Debt Collection Practices Act and any laws in your state. Also you should also have a contract or signed agreement to protect yourself.
What are some of the ways a company can protect themselves or precautions they can make? Should they change the way they do business in any way?
Always get a credit application and check references if extending credit. Have a good credit policy and stick to it!
What are the steps that a company needs to take to collect money due to them?
If your calls or letters don’t prompt payment, you can sue them in small claims court or place them for collection.
TIP:
Be firm about being paid from the beginning. If a debtor knows you are serious, they will be more likely to pay. If they had to fill out a credit application and/or contract, it shows your serious. If you place accounts for collection sooner than later, that also shows you mean business.
Debtors will know you are serious if:
- They had to fill out a Credit Application
- They had to sign a contract
- They receive invoices right away
