How to Create an Atmosphere of Urgency!
You’ve heard the saying “time is money.” In terms of debt collection, it really does hold true! The longer the debtor is delinquent, the less likely you are to recover money on that account. To put it in financial terms, after six months, a delinquent bill is typically only 50% recoverable. After 12 months, many bills are less than 10% recoverable.
If your customer has multiple debts they’re more likely to pay the bills that create a sense of urgency and have penalties for delayed payment or non-payment.
According to the Credit & Collections Kit for Dummies, written by Steven A. Harms, former senior partner at Muller, Muller, Richmond & Harms, P.C., “When you follow up with your newly delinquent customers, you want to grab their attention. Common techniques for creating urgency include:
- Interest and penalties – Consistent with your credit agreement and state laws, add interest, late fees, or both! Give your debtor the unambiguous message that the consequence of dragging out payment is that he’ll end up having to pay more money.
- Attention-getting words and “big red letters” – It’s corny, but it works. Send notices more often with notations like “urgent” and “past due” on them in red ink to get their attention.
- Frequent reminders – Use a series of collection letters.
- Multiple modes of contact – Use different forms of communication to keep your reminders in front of your debtor: email, overnight delivery, telegram, hand delivery, fax, text messages, and even social networking websites.
- Make a phone call – If collection letters and similar contacts don’t result in payment, sometimes a phone call will bring in the money.”
Why Choose Muller Law Firm?
We’ve been in the collection business for over 57 years, and we’re based right here in Michigan. When you call the Muller Law Firm, your initial consultation and strategy meeting are FREE! We don’t think you should have to pay just to be informed of your rights. Do you?
We want to make sure you’re well educated and comfortable before we take any further steps. If you’d like to speak to one of our expert attorneys about debt collection in Michigan, give us a call at 248-645-2440. Stand up for your rights as a business owner, and get what you’re owed!