Home | Forum | Tell a Friend | Text Size | Search | Member Area
 Join Us
Gain immediate access to all our articles, features, how-to's, discussion group, archives plus. Click here for details.

 About this Site
About this Site
Collection Gurus
Sample Articles
Subscribe Today
Feature Articles
Collection Management
Collection Stats
Collection Tips
Construction Credit
Consumer Credit Mgmt
Credit Cards
Credit Mgr's Letter
Credit Procedures
Download Library
Legal Issues
Member Profiles
Most Popular
Outside the Box
Press Releases
Site Map
Telephone Collection
Tip of the Week
Subscribe to our RSS Feed
Affiliate Program
Article Index
Contact Us
Tell a Friend
Text Size
Your Account
Books & Special Reports
Product Department
Our Guarantee
Privacy Policy
Terms of Use

home | Credit Mgr's Letter | Collection Processes Outlined

Collection Processes Outlined

Printer-Friendly Format

"I don't do much letter writing anymore," notes Jan Perlman, credit manager for Medo Industries, Inc. (Tarrytown, N.Y.). But when her other efforts to make contact with a delinquent customer have failed, she will sometimes send a certified letter--to make sure it is received--and follow up with a phone call. She cites a recent situation with one long-term customer. Medo's experience with this company had been very eventful. After satisfactory relations for several years, credit privileges had to be suspended when they ran into severe financial problems.

"We had no alternative," she recalls. "They understood we had to do it, and we did recover all that was due us."

Medo ceased doing business with the company for a year. Then the customer's controller called Perlman to tell her that they were back on their financial feet. His contentions were confirmed in Medo's routine annual review of all accounts--active and inactive.

"We began selling to them again on open account," she says. Then, six months ago, payment problems began anew. "This was really troubling," she says. "I thought we had established an open and honest relationship."

More troubling still was the fact that now she could not reach the controller by phone. So out went a certified letter detailing the condition of the account and reviewing her attempts at trying to reach him.

Collection Management Issues
Resources from leading experts on getting the most out of those involved in the collections process.
Check out's Collection Management Issues


"We must discuss this situation if we're to continue doing business with you," she wrote. "If I do not hear from you, I will have to refer your account to our attorney."

The controller called to apologize and explain that they were in discussions with potential new credit facilities. "He's now keeping in touch with me weekly," says Perlman, adding, however, that credit privileges have again been suspended.

"At this point they're still sending in orders, and he understands that I can't provide credit," she says. "We're doing business on a cash-only basis." She emphasizes, however, that she is more than ready to reestablish credit when the customer's financial situation warrants it. "We're very flexible," she says. We're willing to work with customers through temporary cash-flow problems. But they have to communicate with us openly and honestly."

Editor's Note: This article originally appeared in the Credit & Collection Manager's Letter.

Printer-Friendly Format
·  The Importance of Collections Focus
·  Proactive Collection Strategies
·  Intuitive Collections
·  The Advantages of an Early Collection Letter Over a Dunning Notice
·  Always Look a Gift Horse in the Mouth
·  "Have you been trying to reach me?"
·  Collecting From Customers in Trouble
·  Second Notice? Call Instead

 Tip of the Week
Sign up here
for our Free
Tip of the Week! 
Privacy Notice: We will never share your email with anyone.
 Discussion Forum
Recent Forum Posts
• good interview Qs for hiring collectors?
• Metrics for in-house Collectors?
• Caller ID in collections?
• Missing one of the "Seven Key Traits of Top Collectors" - Is that an Achilles' Heal for Collectors?
• Receivable Meeting format?
• When to place accounts for collection?
• Collection Settlements
Here's what our members are saying ...
"What a great resource! This is the perfect place to refer our customers who have collection problems so they can improve their collections. I figure if we can help them collect faster, they can pay us faster and order more product."

William C. Edgar, CCE
Director of Credit
Zippo Manufacturing

"I can't believe I didn't find out about your site sooner."

"It was exactly what I was looking for."
Jim P.
Hot Springs, AR

"The first item I found in your download library made my subscription worthwhile. I'm definitely renewing!"
John A.
Kerrville, TX

"Your site saved the day for me. The video tutorial helped me quickly and solve a problem I've been struggling with for a year.
Robert K.
London, UK

"I can't say enough about how valuable your site has been to our business. The articles and especially the free downloads really are great."
Victor O.
Seattle, WA