Let's face it: in general, we are not the most liked people in this world. Everyone dreads getting a call from a Credit Manager. They will try to avoid it at all costs. I truly believe we can turn it around and be the one person that everyone wants to talk to. Here are my eleven steps that will make that happen for you!
1. Go that extra step for your customers. Ask them what you can do that will help us both get paid faster. Sometime people just need a little guidance or maybe that little bit of extra help from you. A lot of people have a hard time asking for money. I always tell my customers I will help them, but it will be done legally morally and ethically.
2. Be honest and upfront. Let the customer know in advance what your next step will be and give them time to resolve the issue or try and find a solution. By no means am I telling you to give up your trade secrets. I always like to go above and beyond for my customers. By doing this, if I have to get firm with them, the one thing that they cannot say is I did not try and help them.
3. When calling an account, always be cheerful and upbeat. The person on the other line can sense the "vibe".
4. When getting a call or an email from the customer, chances are they are sitting down to pay bills. Get them what they need ASAP so that your invoice does not get put to the side or on the bottom of all the other bills they have to pay.
5. If you need to file a lien on their property, take the initiative to go the extra step and give all parties a courtesy call at least ten days before filing the lien. Let all parties know you are just making a courtesy call to see what you can do to help everyone get paid without having to file a lien. This will get all parties communicating back and forth and it will get the money moving; not to mention that you will look like a superstar to the General Contractors and the owners because you went that extra mile by calling them to see if things can be resolved before filing a lien.
We all know they get certified letters and you may ask why you need to follow up with a phone call. By calling you are getting the company that signed for your certified letter to actually get motivated and get the issue addressed instead of your letter just ending up on a desk full of paperwork. After all, when you send the notice of intent, time is of the essence.
6. Remember the customer that you ran off because you were not willing to go that extra step? It may appear on the surface that they are not a good paying customer and you may think at first that your company does not need their business, but you never know. As hard as you are trying to collect the money, that customer is more than likely trying just as hard to get his business going and he could land a big job. Guess what? They remember the Credit Managers that were rude or the ones that cut them off and 9 times out of 10 will not come back to your company because of the way you treated them the first time around.
7. Remember that it is your job is to not only collect money, but to help your company grow. The construction industry is cyclical and many of your customers will at some time face cash flow or management problems. Sometimes the customer has significant funds withheld in retainage money or is experiencing weather delays that have contributed to their inability to pay. Sometimes they have grown faster than their accounting support staff and the holdup is paperwork processing. Hear them out, verify what they tell you and assess the situation. Protect your company by noticing and using all legal means of protection. But sometimes the smart move is to help the customer. You have to know "when to hold em and when to fold em."
8. Work with your sales team. Keep sales in the loop because two people tagging the company are better than one.
9. Build an open, honest and upfront relationship with your customers. If you go that extra mile for them in the long run it will pay off. You will be the first one to know when a project has gone bad because your customer will call you and ask you for help.
10. When possible, educate your customers. In the construction trade we work with many young companies just getting started. Many times the new owner has a lot of experience in construction, but setting up and handling of accounting functions, dealing with accounts payable and accounts receivable may be new. There is a learning curve that will take place as they grow, but it may not happen overnight, nor without problems. To improve your chance of collecting, help guide them. Help educate them on how to file lien notices, and liens. Emphasize to them the importance of keeping good records and paying timely to protect their credit and grow their business.
11. Remember: No Risk, No Reward. Not all applicants will be Fortune 500 companies. Every company had a day one with little or no credit and few if any references. They need a chance. The acceptable level of risk is a management decision, but as credit manager you have the ability to help new companies by setting realistic credit limits and monitoring the account daily to prevent surprises. Some of these new guys will not make it, many will, and a few will make it big.
By following these steps I believe you will less likely to get the customers voicemail when you reach out to the customer. You will see your employer grow and you will have more loyal customers because they know if run in to a situation they cannot handle, they know that they do not necessarily have to take it on alone. Make no mistake, at the end of the day I will protect my employer, but at least I can say I tried.
|
|
Editor
|
.png)
|
|
|
|||||||||||