Payment plans: 3 ways to keep A/R from bidding against itself
When it comes to negotiating payment plans with struggling customers, many Collections staffers are a bit too lenient.
Here is a three-step strategy to help Collections pros set up the best possible payment plan terms for your company:
1. Seek out a reasonable payment amount. When collectors start of by asking something like, “Exactly how short are you of the full amount owed?” it puts them in control of the situation right from the start.
2. Have a counter-offer prepared. After customers tell your collectors how much they can pay, your staff should be ready to ask for more. Example: While we’ll consider your payment offer, we’d prefer if you signed a promissory note.
3. Don’t be afraid to stand firm. If customers aren’t willing to meet you halfway, let your people remind them that your company isn’t a bank and some things aren’t negotiable.
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