There are questions on whether a business should continue with their collection efforts, change the way they go about them or even stop during these times. While some businesses may be lenient in collecting during the holidays, it is important to stay on track with your collection efforts. However, you need to do your collecting with an understanding that with the holiday season comes an increased spirit of diplomacy and respect.
Here are tips on debt collection during the holiday season:
Stay on Track
While it may be our nature to give people a break, it does a business no good to back off on collecting outstanding debt. Stay on track with your collection efforts and keep to your internal and external procedures. Also, letting customers get off track only lets them pile up more debt after the holidays which will inhibit future payments.
Collecting during the holidays does not mean you have to be a scrooge. You can remain in the spirit of the holiday season and keep your customers on track. With a little extra diplomacy and a suggested extra customer service call during the holidays, you can keep customers on a payment schedule and pay them a little thank you to keep them as a customer.
Work to resolve debt, not just collect it. Increase your commitment to be flexible with your customers. Working out a payment arrangement is a great way to keep the cash flow running while letting your customers know you not only understand their situation but also value your relationship especially during the holiday season.
The procedures that your business should ordinarily follow the rest of the year should be followed to an even greater degree during the holidays. Just as how you operate the rest of the year, it is important to seek to understand a customer’s situation, be respectful of that situation and work in tandem to resolve their past due debt.
Recommended Books on Collecting Receivables:
- Past Due!: A Debt Collecting Manual for Collections Professionals Accounts Receivable Personnel Small Business Owners
- Become the Squeaky Wheel: A Credit & Collections Guide for Everyone (The Collecting Money Series) (Volume 4)
- Accounts Receivable Management Best Practices
- How To Collect The Money People Owe You: A Complete Step-By-Step Credit And Collections Guide For Small Businesses And Individuals
Category: Cash Flow