D&B Receivable Management Services' professionally-trained collectors ensure that your accounts are handled in compliance with all legal statutes. For consumer collections, our collectors are required to undergo comprehensive training in the Fair Debt Collection Practices Act. For both commercial and consumer collection, compliance with local state and federal statues and regulations is regularly monitored by D&B RMS' management team.

Collection Techniques

Drawing on over 160 years of experience in receivable management with businesses of all sizes and types, D&B Receivable Management Services has established seven rules to managing collections.

One: If you expect to get paid, you will get paid.

When a debtor knows a creditor expects to get paid and will take action on past-due accounts, the debtor will pay. When extending credit:

* Be certain the customer understands the terms and conditions
* Understand and use the tools and service that are available to you
* Ensure that your employees are properly trained in managing and collecting receivables

Two: Use an organized and efficient approach.

A systematic, controlled approach to receivable management is most effective. Establish a procedure for accounts receivable that is comprised of invoicing with set payment terms, a follow-up call and a call if the payment is late.

Three: Manage your receivables.

Extending credit to another company involves risk. This risk is minimized as long as it is properly managed. Improperly handled receivables can get out of control. Some danger signals to watch for are:

* Slow payment or a change in payment habits
* Broken promises of payment
* Unreturned messages
* Postdated or NSF checks
* Unauthorized return of merchandise

Four: Adhere to the terms set forth initially.

When you set terms, communicate them to the customer and then stick to them. State your terms and intentions with clarity and firmness. Develop a set of reasonable terms and conditions that are a part of the sales contract.

Five: Escalate your actions.

If it is clear that the debtor will not pay, do not hesitate to escalate your actions. This can include pre-collection letters and demand notices through telephone collections and legal action.

Six: Keep your word.

Every time that contact is made with the debtor during the collection process, push for a resolution (payment) and establish the next step (call back, repossession, legal action, etc.). Follow through on any further action that you inform the debtor you will be taking.

Seven: Know when to get external help.

Knowledge is your best defense against debt. Establish clear procedures and actions to be taken. Most importantly, recognize that outside help may be necessary under certain circumstances.

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