by Ila Zellner
Sally
the collector scanned through her new set of claims.
The first seemed pretty straightforward. Labels
Boutique had two outstanding invoices for the
designer Donna Karen. She picked up the telephone
and called Donna.
Sally: "Good afternoon, Ms. Karen. I
represent Labels Boutique. You have an outstanding
balance with them."
Donna: "Well, I never received and
merchandise. Do you have a proof of delivery?"
Sally: "Hmmm...I don't have that
information on hand. I will have to contact Labels
Boutique and get the proof of delivery. I will
forward that to you."
The debtor had effectively stalled for a few weeks.
How many times has this happened to you? Or maybe it
was a similar situation, like "I need copies of
the invoicing," or "Can you send me a copy
of the signed contract?" Whether the debtor is
stalling on purpose, or legitimately needs the
information, the claim is delayed and the money is
not coming. To collect on the outstanding balance,
the collector must provide all of the
pertinent information that the debtor requests.
Almost every collection attempt is delayed because
the collector does not have all the necessary
information. When the debtor makes a demand for the
information, the collector must first contact the
client and request it. Then the client needs to find
that information and send it to the collector.
Finally, the collector forwards the informationto
the debtor. When a collector is able to provide
documentation fast, they have more control over the
claim and the ball is always in the debtor's court.
Having all the information on hand helps to cut
through the smoke and get right to the money.
Here is a list of some basic documentation that
every creditor should have to help the collector and
increase the chances of a successful collection:
-
Signed
Contracts
-
Personal
Guarantees
-
Proof
of Delivery
-
Copies
of Invoices
-
Credit
References
-
Copies
of Checks
-
Dun
& Bradstreet Reports
-
Current
Statements of Account
-
Terms
of Leases/Agreements
-
Correspondence
From the Debtor
-
Previous
History of Collections
With
this information on hand, the collector can dodge
the excuses and get to the money. Sending this
information when placing the claim will save
valuable time, resources and money.
Here's the above story again, with Sally having all
the information and the debtor having nowhere to go:
Sally: "Good afternoon, Ms. Karen. I
represent Labels Boutique. You have an outstanding
balance with them."
Donna: "Well, I never received and
merchandise. Do you have a proof of delivery?"
Sally: "Why yes, I do. I also have the
invoices, a current statement of account and a
contract outlining the terms of the agreement with
your signature on it. Why don't I fax this
information to you for your perusal and have my
courier pick up a check tomorrow."
Donna: "Umm....err....ok."
