10 common mistakes when trying to collect money
Friday, September 19th, 2008► Employing an agency that “Guarantees” to collect your money.
This will usually result in you paying an upfront fee that
will never be seen again
► Assuming “Everything will be alright”
Be on top of your collections
► Assuming aggression will get your money paid
More likely to lead to confrontation and a long wait to be paid
► Immediately reverting to court action
Remember this fact: A CCJ is no guarantee of payment
► Ignoring your debtor’s problem
Your client may just have a small issue. Don’t be scared to find out what the problem is.
► Horses for courses
Often the worst person to make a chasing call is the Boss.
► Fail to Prepare, Prepare to fail
Communicate your credit terms at the point of sale. If you don’t, you are leaving it to chance. Not a good idea.
► Don’t let a current debt become a write off.
The only difference between a new debt and a write off, is…time (6-10 months on average)
► Organ grinders & monkeys
Don’t fool yourself with the easy option. Chase your money with the person that holds the purse strings
► The last is actually a bit of advice…Get the experts in to do the job!
I’ll leave you with a quote
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Whenever a company produces something internally that others can buy or produce more efficiently and effectively, it sacrifices competitive advantage; focus on what gives your company its competitive edge, outsource the rest.Harvard Business School.
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