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    CMCP Chap 12

    Uploaded by

    Kei Senpai
    This document discusses various factors related to debt collection methods and processes. It covers evaluating delinquent customer accounts, assigning collection responsibilities, formal collection methods, common collection problems, dealing with difficult customer types, and methods for improving collections. Specifically, it notes that collectors should consider the amount owed, payment history, and other factors to assess accounts. The collection process varies depending on how long past due and company size. Formal collection involves courteous contact attempts and demand letters if needed. Problems include finding debtors, bankrupt accounts, and language barriers. Improving involves awareness, reviewing procedures, technology, and policies.

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    CMCP Chap 12

    Uploaded by

    Kei Senpai
    27 views2 pages
    This document discusses various factors related to debt collection methods and processes. It covers evaluating delinquent customer accounts, assigning collection responsibilities, formal collection methods, common collection problems, dealing with difficult customer types, and methods for improving collections. Specifically, it notes that collectors should consider the amount owed, payment history, and other factors to assess accounts. The collection process varies depending on how long past due and company size. Formal collection involves courteous contact attempts and demand letters if needed. Problems include finding debtors, bankrupt accounts, and language barriers. Improving involves awareness, reviewing procedures, technology, and policies.

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    REVIEWER FOR CREDIT

    Original Title

    CMCP CHAP 12

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    This document discusses various factors related to debt collection methods and processes. It covers evaluating delinquent customer accounts, assigning collection responsibilities, formal collection methods, common collection problems, dealing with difficult customer types, and methods for improving collections. Specifically, it notes that collectors should consider the amount owed, payment history, and other factors to assess accounts. The collection process varies depending on how long past due and company size. Formal collection involves courteous contact attempts and demand letters if needed. Problems include finding debtors, bankrupt accounts, and language barriers. Improving involves awareness, reviewing procedures, technology, and policies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    27 views2 pages

    CMCP Chap 12

    Uploaded by

    Kei Senpai
    This document discusses various factors related to debt collection methods and processes. It covers evaluating delinquent customer accounts, assigning collection responsibilities, formal collection methods, common collection problems, dealing with difficult customer types, and methods for improving collections. Specifically, it notes that collectors should consider the amount owed, payment history, and other factors to assess accounts. The collection process varies depending on how long past due and company size. Formal collection involves courteous contact attempts and demand letters if needed. Problems include finding debtors, bankrupt accounts, and language barriers. Improving involves awareness, reviewing procedures, technology, and policies.

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    of 2

    COLLECTION METHODS

    I. Factors to Consider in Evaluating the Portfolio of Delinquent Customers


    In here I learned that a delinquent client is someone who fails to do what is
    needed by law, obligation, or contractual agreement. Factors such as the amount
    owing, the propensity to write off modest accounts, and rash collection actions should
    be considered together with the assessment of the item's age, the client's payment
    behavior, and how the customer has previously fulfilled its promises. We also have two
    stages of delinquency: the early stage, which varies depending on how it is prioritized,
    and the serious stage.
    II. Collections Responsibility
    The collection responsibility varies depending on the size of the borrowing
    company as the staff member assigned to this also varies. The collection process also
    varies depending on how long the obligation is past due however, collectors also give
    consideration to macro collection issues especially to small and medium-sized
    companies.
    III. Collection Methods
    As a business owner/manager, you must be prepared to deal with debt collection
    concerns.Responding to delinquent customers properly is critical to ensuring sustained
    business development and success. To do this, you must interact with your consumer in
    a courteous manner when payment is past due. You must exhaust all conceivable
    options, and if none of them work, you may now issue a formal letter of demand. Just
    make sure that the terms of trade are explicit and that all specifics are agreed upon in
    order to make the collection quick and convenient for both you and the consumer.
    IV. Common Collection Problems
    It is already common for creditors of lending companies to face problems in their
    collection process. It could be related to the customer directly or because of government
    regulations like during the coronavirus pandemic, debt collection activity was prohibited
    or put into halt. Some of which are the following: a. it takes too long to find debtors when
    sorting through all the data; b. some accounts may be out of business or bankrupt; c.
    language barrier; and so on.
    V. Problem Customers and How to Deal with Them
    I have learned that a critical part of running a successful business is managing
    customers because you have to deal with difficult customers. But there are ways to deal
    them depending on what type of customer they are. For example, for an indecisive
    customer, you have to acknowledge their indecision and avoid being pushy then offer
    them facts and the best solution for their needs.
    VI. Methods for Improving Collections
    In here, the lecturers discussed that the first step in collection is awareness –
    awarenessto the industry, to your company, and to your customer. So, in order to
    improve your collections, your collectore must really know or aware of when tp start
    their collection, whom should they contact, how should they collect the debt, and many
    more. You could also review your company’s overall procedures to see if you can
    determine why payments are late, review the technology your company is utilizing to
    interact with customers, update your A/R management software or review your policy
    regarding billing dates and procedures.

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