Sell the Benefits of Paying on Time!
Collections made human sounds like an oxymoron, but I learned about collecting money as a young boy delivering newspapers in a small town in Eastern Kentucky. You think twice before being rude to someone you are going to see on a daily bases. I learned that the old saying “it is easier to catch flies with honey” is true. My experiences of collecting from my neighbors taught me to sell the person I was extending credit the benefits of paying on time.
One benefit to them was it motivated me to make sure they received their paper on time each day regardless of the weather rain, snow, or sunshine. Another benefit was that I could pay for the payers I was to deliver to them otherwise the newspaper would not supply me with the papers I needed to deliver to them. Another benefit to them was that I would continue extending credit to them on a weekly or monthly bases otherwise they would need to go to town and pick up their paper. This would mean they would spend a lot of time and money they could save. Selling the benefits of paying before you extend credit will help you reduce bad debt, increase collections and retain customers.
