4 Essential Elements of a Collection Policy
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The four essential elements your business' collection policy should consist of.
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4 Essential Elements of a Collection Policy
- 1. Four Essential Elements of a Collection Policy Receivables Management Solutions Since 1938
- 2. Most businesses have a written credit policy. It spells out who gets how much credit, for how long, and under what conditions. However, some of the same businesses fail to back their credit policy with a written collection policy, which takes effect when a receivable becomes past due or a check bounces.
- 3. Element 1: Consistency and Credibilty • Your business needs to maintain one consistent attitude when dealing with debtors • Collectors need to know that the attitude will be supported up and down the line by all others who come into contact with debtors • If this fails to happen, the collector’s credibility will be diminished in the debtor’s mind
- 4. Element 2: Dealing with Debtors • Your collection policy needs to reflect: – Who is authorized to negotiate – Who is allowed to make exceptions • Collectors need to understand how much flexibility they have • Exceptions need to involve everyone – consider a collector that is requiring a payment in full – if the debtor calls the manager and the manager says to forget about the debt, collection efforts will be thwarted
- 5. To see how Practices within the Policy and Enforcing the Policy are essential elements affecting your collections, follow this link! • Four Essential Elements of a Collection Policy: From IC System
- 6. Legal Disclaimer No Attorney-Client Relationship Created through this Presentation: Neither your receipt of information from this presentation, nor your retention of I.C. System, Inc., or its legal counsel creates an attorney-client relationship between you and I.C. System. No Legal Advice Intended: This presentation includes information about legal issues and legal developments. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You should contact an attorney for advice on specific legal problems. © 2014 I.C. System, Inc. All Rights Reserved.
- 7. Legal Disclaimer No Attorney-Client Relationship Created through this Presentation: Neither your receipt of information from this presentation, nor your retention of I.C. System, Inc., or its legal counsel creates an attorney-client relationship between you and I.C. System. No Legal Advice Intended: This presentation includes information about legal issues and legal developments. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You should contact an attorney for advice on specific legal problems. © 2014 I.C. System, Inc. All Rights Reserved.
Editor's Notes
- Question: Who in your business office (dentist, chiropractor, veterinarian) is responsible for collecting unpaid customer bills? Is it you? Your office manager? An outside collection agency? Answer: We believe your front desk staff CAN and SHOULD be handling the majority of these accounts.
- Question: Who in your business office (dentist, chiropractor, veterinarian) is responsible for collecting unpaid customer bills? Is it you? Your office manager? An outside collection agency? Answer: We believe your front desk staff CAN and SHOULD be handling the majority of these accounts.
- Question: Who in your business office (dentist, chiropractor, veterinarian) is responsible for collecting unpaid customer bills? Is it you? Your office manager? An outside collection agency? Answer: We believe your front desk staff CAN and SHOULD be handling the majority of these accounts.
- Question: Who in your business office (dentist, chiropractor, veterinarian) is responsible for collecting unpaid customer bills? Is it you? Your office manager? An outside collection agency? Answer: We believe your front desk staff CAN and SHOULD be handling the majority of these accounts.