• The goal in asking questions is to obtain a complete and accurate understanding of the customer’s financial situation, and then a workable payment arrangement that will resolve the account

·         Collectors must learn how to direct the customer’s attention toward payment

·         A transition statement can be used to link the solution with a desire the customer has expressed

·         Emphasize the use of voice tone to convey to the customer an interest in helping resolve the situation: and do not compromise

·         An objection takes many forms, but is almost always either a stalling technique or a subtle request for more information; and

·         Approach this stage of the call as a salesperson selling the merits of resolving the account

·         Always closing the call with help avoid confusion and excuses later

·         A proper closure ensures that the collector and the customer are agreeing to exactly the same things

·         The collector simply summarizes the terms of the payment arrangement, obtains the customer’s commitment to the arrangement and thanks the customer for his/her commitment

·         Collectors must understand that an account is not current until the overdue amount is received

·         Follow-ups should include keeping a detailed record of payment arrangements, prompt file updates so another collector can handle the account and immediate callback if a deadline is not met.

Broken Promises:            If your customer promises payment then neglects to keep the promise.

Unreturned Phone Calls / Messages:     If a customer avoids your calls, he/she is avoiding payment of debt.

Screening Calls:                                If a customer is always in a meeting always away from their desk, always busy, always out of the office, etc., you have a potential credit risk.

Places Large Orders:       If your customer all of a sudden places a large order, be suspicious and investigate thoroughly – you could be getting set up.

Changes Bank:                 People change banks usually for a service reason or a better rate. Be sure it is not for the wrong reason.

NSF Cheques:                    No matter what excuses your customer gives you, a NSF Cheque is a definite “No-No” and should not be treated lightly.

Post-Dated Cheques:     Although not always, post-dated cheques are an indication of an under-financed business or one with bad cash flow. Either way it is a sign of caution.

Sporadic Buying:              If your customer’s business or product line is not seasonal, sporadic buying could mean your customer jumps from supplier to supplier and has no loyalty. (Usually this type only pays the bills when he/she gets a new order.

Cannot Pay Until Their Customer Pays: This is a poor and inexcusable reason. Move fast on this one because cash flow is a problem.

 

Newport Funding Group Inc. is committed to helping small business grow through our factoring (advance on invoice), account receivable services, and additionally, purchase order financing and leasing through our network of alternative financing suppliers. 

Large and small organizations alike see a constant battle between sales departments that have quotas to meet, bonuses to earn and credit departments that want to limit exposure. 

Accounts receivable departments can only collect what can be collected. Credit managers must therefore be pro-active in ensuring that sales departments act properly when extending credit to customers and that accounts receivable are continually monitored to ensure that collection efforts are maximized and coordinated with sales. 

1.       Credit Granting Procedures       

a.        Pre-emptive Options

It is inexcusable that suppliers and unsecured creditors, in general, are the last to become aware that a particular customer is in financial difficulty. By the time unsecured creditors find out, it may already be too late. Pre-emptive steps are necessary to reduce financial exposure. The objective is to know your customer, before they are granted credit privileges.

b.      Credit Applications

The credit application should be an introduction of the potential client to the vendor. The objective should be to set answers to questions that will allow for a determination of their credit worthiness.

c.       Processing Credit Applications

There are a number of services and information sources that are available to suppliers to check the debt exposure and credit history of a potential customer. Types of information can be grouped into two categories, objective and subjective sources.

Objective Sources Include:   Government Agencies, Financial Institutions, Court Records, Land Registry Offices, Superintendent of Bankruptcies

Subjective Sources Include: Trade References, Information Exchanges, Industry Word of Mouth

Periodic updates will help to determine whether a customer’s financial situation has changed for good or worse prior to continuing or advancing their credit facility. Sources of information include Equifax credit reports, Equifax account monitoring, Bank reports, Corporate Searches, Trade reference verification and Security registrations.

All the best athletes, business leaders and political leaders use coaches to help keep or regain their edge. I’ve met a few coaches along the way and some are people in my industry who I’ve known for years and they are always imparting wisdom because its second nature for them.    There are the coaches who get paid for their time and some that get paid based on results.   I feel the same way about coaching as I do hiring a financial professional and I can’t imagine talking to someone who has never built a business or had success before they dole out solutions.   Finding the right coach who you can trust to move you to the next level in life, business, and relationships with measurable results is a powerful tool.  

From a small business perspective most entrepreneurs are operators and they don’t always have the skills to be great in every facet of business. When you’re starting out you need to be good or at least effective at everything until you can afford to hire.   Having a coach gives you the opportunity to look at things you don’t have time to examine or consider tips that can have immense impact on your business. Sometimes they offer great marketing ideas or systems to uncover the most effective ways to spend your marketing budget, or cut costs to help make you more profitable.   You may not have to work as hard to make the same money.  Sometimes it’s about addressing motivational issues or dealing with stress and helping you make sure you’re on a good life path.   They can help you find the right people to compliment your business and suggest alternative ways to get things done without hiring more people.   If you have never considered a business coach talk to people who have and see what measurable results they experienced. There are many different styles of coaching so make sure you have a clear picture of your expectations so you’ll know what will be a good fit for your situation.

These coaches all have different styles and each one has a base of satisfied customers and a good place to begin your search for coaches. 

Michael Nitti has clients all over the world and has been life and business coaching for more than 25 years.   Michael has recently written a book called The Trophy Effect and he has clients that range from Presidents of large International companies to real estate agents and he does coaching work for Anthony Robbins / Robbins Research as well.              http://www.intentionquest.com/2.html

Gavin Rouble works with business professionals and his focus is on improving your business and increasing profits.   He has a more precise business model to help businesses make more money and be profitable with Focal Point a Brian Tracy’s coaching model.   http://www.gavinrouble.com/contact-us

Strategic Coach is another alternative and they have workshops where a group of business people with some level of success meet regularly to improve business practises and they have a system they believe will show you how to enjoy your success and be more productive. This coaching is mainly aimed at business already enjoying some level of success but ready to more to the next level.

 

 

Thrive and plan for success by finding new and innovative ways to construct your team to support your initiatives. Remember your previous successes in order to have a starting point. If you come to the realization that in the past your achievements included comprising a strong and supportive team, consider building a new team to re-create the things that were successful for you in the past. Finally, carefully identify the tasks that lower your efficiency, motivation or tasks where you lack expertise. Once these have been identified, get some help by outsourcing or using part-time help to improve your efficiency and customer satisfaction.

 

What if you don’t have the money to expend on personnel?  

 

A.            Evaluate all your current resources – even if it means begging, borrowing or stealing time form your children, nieces or nephews. By allowing them to do those tedious jobs, you focus more time on developing your business.

B.            Consider finding a college student on a co-op term or a local high school student. Hiring well educated students can be a great asset to your team as they are familiar with most current technologic developments and they have a keen determination to learn.  

C.            Explore government programs to cover a percentage of employee wages.

D.           Offer an internship program where you would provide invaluable training for someone who is looking to improve their marketability.

E.            Find help on marketing initiatives by hiring newly graduated students to assist with building a website and managing it.   They get to use you as a reference and gain experience and you will benefit from a lower cost solutions and better time management.

F.           There are job websites where you post what you need done and people bid on your work and you can hire people inexpensively for smaller jobs that take up your valuable time. 

 

Remember: Don’t try to do it all on your own, especially if you find yourself devoting too much of your spare time undertaking minute tasks instead of managing or building your sales.

 

 

Many small business owners are finding it difficult to market effectively and strategically with a limited budget. Although marketing may not always have immediate returns, it is essential to your presence in the market place.  

 1)      Define your goals: Create specific objectives you wish to achieve by marketing.   

2)      Define your market: Marketing is the most effective when you have chosen a specific market to target your product or service to. This will allow your marketing strategies to be more decisive and strategic.  Make sure that your market is aware of how you can be of benefit to them.

3)      Find strategies that get results: Base your marketing on accurate information. Find what works in a company similar to your own and consider what worked for you in the past. However, keep in mind what worked in the past may not work today.   Today the internet is a marketing vehicle you can’t afford to ignore.

4)      Define your competition: Be aware of your competitors and how they market to design ways to differentiate your business from theirs. Specifically market the key factors that make your company unique.

 5)      Budget your marketing: Before you commence your marketing for the year, define the amount of money you can allocate in order to be successful. Plan to succeed – succeed by planning!

 6)      Act on new opportunities: It is essential to be open to any sort of change. If a marketing strategy is not working, be flexible and change directions. Try new marketing approaches.

 7)      Track your results: If you don’t put a system in place to monitor the results then you could be marketing in an area that is no longer working and wasting resources.