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Sales Commissions Impact the Collection Process

Your Virtual Credit Manager

it just might help them pay you sooner!

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Business Customer Personas: A Collectors Guide

Your Virtual Credit Manager

Share The High-Risk Account: Ideally you do not want to extend credit to high risk accounts. You will, however, extend credit to marginal accounts, and from time to time marginal accounts and even lower-risk customers will become high risks.

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Effectively Collecting Receivables Is a Time Management Challenge

Your Virtual Credit Manager

In an ongoing Collections environmen t , you will have already contacted the high risk accounts, so your prioritization scheme should be as follows: Accounts previously contacted that have failed to pay as promised. In fact, broken promises should be followed up the day after the payment was expected.

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After the Credit Application: Getting to Know Your Customers Even Better

Your Virtual Credit Manager

Business credit is very dynamic, especially across a portfolio of accounts. Today’s low-risk customers can very quickly become tomorrow’s high-risk accounts. After the Credit Decision Once you approve a customer for a credit limit, data collection is not over.

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It's Time for a Layered Approach to Collections

Your Virtual Credit Manager

Further Applications and Continuous Improvement To maximize the benefits of this zero-tolerance collection strategy, consider: Further tailoring your collection strategies for consistent but slow-paying, lower-risk, larger-dollar accounts — since the risk of non-payment is minimal a collection strategy with a soft initial reminder followed by (..)

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A Focus on Collections & Credit Fraud

Your Virtual Credit Manager

While emails are often used, phone calls can be more effective, especially for high-risk accounts. Another key error is avoiding direct communication with customers, such as making uncomfortable collection calls.

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Balancing Credit Sales with Profits

Your Virtual Credit Manager

Purchasing Credit Insurance, however, will only reduce the risk problem if: The policy covers the financially weak, higher risk customers. Credit Insurance policies often exclude individual, high risk accounts. Insurers want to be paid for the risk they bear. The policy cost is acceptable.