bob – the builder (part 4)

bob – the builder is a real, live Case Study. I am recording what does or doesn’t happen so that you can see the thought processes behind an effective collection strategy and how the three principlesof effective account collections are applied in real life.

Part 4

05 February – email from Bob.
Hi Michael, Sorry for the delay in answering your email, was out all day yesterday. Dave’s deposit is in our bank account, all okay for the next step.

06 February – email sent to Dave (the debtor)
Dear Mr Developer,
Thank you for your email and for the payment sent last week. Although the exact monthly figure cannot be guaranteed, the company still requires regular monthly reductions to be made with any remaining balance to be paid in full by the end of this financial year, if not sooner.
As interest continues to accrue on the remainder, we will send you an updated figure before 27 February, the next installment date, so that you may update your records. Thank you once again.
Regards,
Michael Todd.

Note the Points made in the email:
1: his point about spasmodic balances is acknowledged,
2: he is advised that we still want “something” monthly,
3: he is also told that we still want it paid in full by the “deadline”,
4: he is still being charged interest.

Even if Bob decides NOT to charge interest, Dave doesn’t know that, that gives Bob some room to negotiate with Dave later if he needs to.

Point 4 also gives me an excuse to contact Dave again before the next due date which will act as a reminder to him (then), as it let’s him know (now) that we’re not going away!