Checklist: Preparing to make a phone call to chase money

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Last updated on February 13, 2013

Successful telephone collection calls are structured and controlled. These six steps will help you make a successful collection call:

correct telephone number and right contact name
amount outstanding
what the debt is for (products or services purchased)
customer order numbers
evidence of receipt of products or services
date of last transaction
what the past volume of sales has been
record of customer’s payments in the past
how many attempts have been made to contact the debtor
form in which previous communications have been made – letter, telephone, facsimile or email
record of last call made to the debtor
present or last known address
whether any other member of staff has communicated recently with the debtor
whether the debtor has a standard excuse.

Be prepared to take control.
Be positive.
Identify yourself.
Identify the person you are talking to.
State the reason for your call.
If the person you need is not there, leave your name but do not disclose the reason for your call.

Ask for payment in full.
Convey a sense of urgency by setting deadlines.
Use a pause to put the burden of conversation on the debtor, such as "I need your payment no later than Friday". Pause. Don't say another word – you are applying pressure in the most powerful way possible – through silence.
Ask questions.
Be a good listener – listen for clues on how the debtor may be able to pay.
Sell the benefits of paying.
Don't argue, preach, judge or moralise.
Don't let the debtor rattle you.

Assume leadership in finding a solution to payment.
When the debtor indicates why the account has not been paid, you will have an indication as to how the issue may be resolved.
Do not agree to an instalment plan until you know with conviction that there is no alternative.

Payment will be more likely if you can combine the debtor’s motivation to satisfy some need (physical, security, social, ego or self-fulfilment) with appeals to the debtor’s honesty, integrity, pride, fears or anxiety.

Close the call when you have achieved payment in full or reached agreement as to acceptable terms.
If payment in full cannot be obtained, remember that a debtor’s first offer of a payment plan is seldom their best.
Where an instalment plan is adopted, a commitment to amount, method and dates for payment is required.
Send a letter, facsimile or email by way of confirmation.
Record details in the debtor’s file and make plans to follow up the arrangement made.

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