How to overcome the fear of collecting money

Every business must deal with the collection of accounts receivable.

Having a system and procedure in place for the collection of this revenue must be established no matter what the size of the business and all staff who handle accounts should be trained in how to deal with debt collection.

Outstanding accounts can have a devastating effect on a business and can sometimes see a business fail in its success.   People understand and recognise that is it important to collect these accounts and they contribute to the financial health of the business; however, they are still often avoided as it is perceived as an unpleasant or difficult task to be performed.

Understandably people feel unsettled asking customers or clients for the payment of their accounts and nobody really likes to ask someone for the money that they owe and at times is extremely unpleasant for both parties.

It is important to get over this hurdle, forget all the stereotypical analysis and recognise that it is rewarding to perform this task and that you are collecting a legitimate account, that you are entitled to be paid for as you have delivered your promise of the products or services required.

When collecting an account, you must realise that it is more than just collecting the money and making the customer or client pay.  Collection extends as far as:

• Building a positive relationship with your customer,
• Come to an agreement to allow you to be able to collect your account whilst aiming to retain the customer,
• Retain the customer,
• Develop mutually agreeable solutions with the customer for the future so that both parties will be rewarded, and
• Eliminate any possible conflict or further circumstances that requires the customer not to pay you on time.