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THE COLLECTION

CALENDAR AND
SOME
SUGGESTED
COLLECTION
APPROACHES
THE FOLLOWING COLLECTION CALENDAR COULD BE
AN IDEAL SET-UP FOR A MORE SUFFICIENT
COLLECTION SYSTEM:

Days Overdue Effort

5 Telephone
7 First reminder
20 Second reminder
30 Telegrams to pay within 5 days
35 Collection letter to pay within 5 days
45 1 Secured Accounts Attorneys letter/field visit
2 Unsecured Accounts Final demand letter/field visit
60 1 Secured Accounts Repossession Extra- judicial foreclosure
2 Unsecured Accounts Telephone final follow-up/attorneys
letter
70 Referral to lawyer of secured accounts for replevin/judicial
foreclosure; and unsecured accounts shall be referred for
appropriate legal/ collection action by lawyer/collection agency

90 1 Follow-up action with lawyer on status of accounts


referred
2 Continuation of collection efforts accounts not referred
3 Write-off
TWELVE TYPES OF PROBLEM
CUSTOMERS AND HOW TO
DEAL WITH THEM
1. THE NEGLIGENT WHO DOESNT BOTHER WITH
DUE DATES
2. THE HONEST BUT CONFUSED WHO DIDNT
UNDERSTAND THE TERMS TO BEGIN WITH
3. THE CANT BE BOTHERED WHO REFUSES TO
PAY A SMALL BALANCE
4. THE SEASONAL DELIQUENT WHO FALLS BEHIND
WHEN HIS BUSINESS HITS A SLACK SEASON
5. THE EMBARRASSED LATE-PAYER WHO PAYS LATE
THROUGH NO FAULT OF HIS OWN
6. THE CHRONICALLY SLOW WHO MAKES ALL
CREDITORS WAIT UNTIL THEIR MOST LIBERAL
SUPPLIERS; TERMS EXPIRE
7. THE CHRONIC LATE-PAYER WHO PREFERS
SUPPLIERS CREDIT TO BANK LOAN
8. THE CREDIT STRETCHER WHO IS USUALLY
TEMPORARILY OVER-EXTENDED
9. THE PERENNIAL DISCOUNTER
10. THE LAST-DITCH DEBTORS AND CUSTOMERS
WHO SIMPLY CANNOT PAY
11. THE OUTRIGHT FRAUD
12. THE SILENT QUESTION MARK (?)
ROLE OF COLLECTORS
IN BUSINESS:
COLLECTORS REPORTS
AND RECEIPTS
The action man of his department for, after all, he brings home the bacon. The
cold cash so much needed by the company;

The after-delivery credit investigator. the eyes-and-ears of the credit


department for it is part of his job to submit additional credit investigation reports,
to supplement the CIR already on file.

The listening post of the customers business condition. Since he regularly visit the
customer, he is in the best position, together with the salesman, to report on any
usual change in the business or even personal condition of the customer that may
effect his credit standing;

The PR, or public relations, man, not only of his department but of the company
since he is in the front line of the business operations. He will know if he is
sufficiently trained and motivated enough, whether the customer intends to place
more order or secure additional loans, and for what purpose;

The financial adviser of the customer since he is supposed to know the financial
conditions of the accounts he handles.