Who will be your credit manager, collector or in charge of the credit department? Pick one person to be in charge of all credit applications and reports. Write that name down so you can talk to that person about this responsibility and the job and make sure they are willing to hold that responsibility. Make sure everyone knows who this person is so they can go to them about anything credit related.
Get credit applications. Where to get them: online, office supply stores, CD’s or books of business letters and forms, local printing companies. Download free credit applications at http://www.MichelleDunn.com/free-from-michelle or if you have a copy of my Ultimate Credit & Collections Handbook, the check IS in the mail – you have a CD in the back of the book that has examples of different credit applications you can print out and use. If you want a copy of this book with the CD, visit my website store or amazon.com.
Get some collection letters ready. Many businesses like “series” of letters, normally starting off with a friendly reminder and gradually getting stronger as payment is not forthcoming. You can find letters online, on the CD in the back of my Ultimate Book or in my book Debt Collection Letters and Forms, how to get your customers to pay or write your own.
Research and choose a collection agency. You want to find an agency that you are comfortable with BEFORE you need it. When choosing an agency make sure that they are fully acquainted with the nature of the goods or services that you provide. If an agency is familiar with your industry, it will be better suited to handle complex situations that arise during collections.
Do not place accounts with more than one collection agency. Make sure that if you decide to change collection agencies, the account is only be worked on by one service.