Calling customers that have not paid? Follow these important guidelines

Calling customers in good times is pretty easy and stress-free for most of us. But calling them when they have not paid their bill is a different type of phone call.

While using a collection agency can be a necessary part of your accounts receivable process, it is important for your business to use internal resources to try to resolve a past-due account before sending it to collections.

If you’re calling customers who are behind on paying your business, we have provided a brief guide on the process that you and your team should follow.

Make sure you prepare for the follow up call

Whoever is calling your customers, they should be prepared with adequate information. Not only should they have detailed account information, but they should understand what service was provided and how much. Being prepared greatly increases your chances of receiving payment and can help you mitigate any dispute right on the spot.

Follow collection laws including the FDCPA

While most collection laws are written for collection agencies, it is a great idea to follow them when making internal collection calls to protect your business. Calling consumers during normal business hours is usually fine. However, you should double-check with state laws because they can differ. It’s also imperative that you never harass a consumer, provide false information, or threaten that consumer with any action. If you inform that customer that you’ll be sending their account to a collection agency, you must be prepared to do so.

Ask the customer how the service was

One way to start a dialogue with a customer that has not paid you yet is to ask them if they were satisfied with the service your business provided. This can accomplish two things. First, it’s a gentle way to start a discussion. But second, it may provide them with an opportunity if they have a complaint or dispute. If a consumer has an issue with the service or a dispute about a bill, they may put off paying you. Calling them and asking if they are satisfied with what you’ve provided is a good way to understand their point of view.

Closing the loop regarding the service you provided

If there is a legitimate concern about the service your business provided that customer, this is your opportunity to resolve that matter. If the concern is nothing more than a breakdown in communication, make sure your team is clarifying any part of the service. Your goal at this point is to either make good on a legitimate dispute, or communicate the facts.

Bringing awareness to an outstanding invoice

Once you’ve established a rapport and dialogue with your consumer, it’s time to bridge into the outstanding invoice. It could be something as simple as saying, “by the way did you know you had an outstanding invoice with us?”

Ask for payment and discuss options

It’s OK to ask for payment on the phone. In fact if you are owed money, it’s your obligation to your business. Sometimes it’s difficult to get a consumer on the phone so when you have that opportunity, it’s important to ask for the payment due. If they inform you they’re experiencing financial difficulties, find a way to work together such as asking for partial payment.

Stay calm and be tactful when calling customers that have not paid

One of the most important aspects of calling customers about past due payments is to remain calm. Being professional and respectful is the only way to resolve outstanding invoices. You can be firm with a customer but being tactful and diplomatic is a must. When a customer refuses to pay or argues about the amount, it is difficult to control our emotions. But it’s important to not let those emotions get in the way of conducting business.

Confirm contact information is correct such as address

If there is any doubt about the accuracy of the contact information you have about the customer, it’s important to confirm that on the call. Sure, if you’re a lawn care company you’ll know the address but in other industries, it’s a good idea just to confirm phone numbers and address. In some cases, you may be mailing an invoice to an incorrect address.

Document details of the call

It’s important to document any details about your follow-up calls with customers. And it is especially critical if the customer refuses to pay. It not only helps provide you with information for future interactions with this customer but it also provides you with necessary information and documentation if you have to send that account to collections.

Relax

It’s important to relax when calling consumers that have not paid you. Some of these calls can become stressful and it’s important to understand this is just part of business.

If the calls are too stressful or too numerous for your business, it’s important to talk to a third-party collection agency about removing the awkward situation you may be in with customers.