credit control management

Home/techniques/credit control management

credit control management

Haven’t got any credit control management support staff to help you chase up overdue invoices?

Then, make one up!

Make up any name you like (Zak Kingston was one we used for a sole practitioner a few years ago) and appoint him (Zak) to be the person in charge of credit control in your business!

Zak doesn’t have to EXIST to be effective.

Why does this work?
The only people that know the true workings of your business – are those people within it. Zak could be your own external book-keeper as far as your clients are concerned. As a collection tactic it’s very unsettling for debtors with outstanding fees to get a reminder email or letter from someone they don’t know. They’re out of their comfort-zone. They may know how to deal with you or your staff – but what about this Zak Kingston character?

So, why DOES this work? It’s using Fear Of the Unknown again. Debtors may have ignored all previous contact attempts but when this Zak character keeps emailing or writing to them, they’ll respond. Even if it’s only to find out who Zak is! But the point is, debtors will react to Zak’s written reminders.

And what can you say when a debtor calls and asks to speak to Zak?
Simply, “He’s not in. Can I help?”   The purpose is to get debtors to react, to respond. You can even blame Zak for chasing a debtor up when the debtor calls!

This technique’s used far more frequently than you may think. A Finance Company I used to work for had such an individual. All reminder letters went out under his name and when a debtor called in reply to one, the receptionist knew it was a call to be put through to the Collection Department – because Zak was never there! How could he be?

Outrageous? Unprofessional? Over the top?
I can only answer this with a resounding No.
Even if your debtors consider your business to be a “soft touch” (someone they’ll pay on a “when-I-get-around-to-it” basis) – Zak may not be! Of course they’ll never actually get to speak to Zak (how could they?) – but they don’t know that. As in any war engagement – this is using the element of surprise.

So please, consider engaging Zak if you don’t have many support staff or want to take a fresh approach to account collections. He’s not an additional salary, never takes a day off and will be a great help to you to recover paymemts for overdue invoices. This simplistic (yet very effective) tactic is tremendous. It keeps you as the Good Guy, retains goodwill AND collects overdue payments …as well, and

… he doesn’t even exist.

By | 2020-04-03T05:23:04+00:00 August 5th, 2011|techniques|1 Comment

About the Author:

Have you ever wondered why a client does business with you and then ignores your invoice like they had no intention of paying it in the first place or they treat you like their own personal line of credit, leaving YOU dangling, waiting months for their payment? Unfortunately this situation is all too common and can even be puzzling for the most experienced business owner. If you’ve ever had to handle outstanding accounts or you are just so over non-payers, then we can help. Real-world skills, solutions, tips & strategies to get more accounts paid on time, and, most importantly, how to maintain customer goodwill while keeping YOUR cash flow in the positive. You will find the blog posts helpful but to get real results, contact us by using any of the forms on this site, by email or by phone. I’ve been involved in the management of accounts for over 30 years, heard every excuse in the book, can spot a non-payer at 20 paces. Finance Companies in the 70s (systematic, tough), professional firms in the 80s (no systems, too gentle) and, since then, just about every other sort of business you can think of. I’ve written books on the topic, spoken all over the place about it and the blog in this website is my way of “giving back”. I hope you find it helpful.

One Comment

  1. Low apr November 24, 2013 at 1:03 pm - Reply

    Nice one..i was looking for something like this..

Leave A Comment Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.