Kuhlekt-> O2C

Commitment & meticulous follow-up is important.

Commitment & meticulous follow-up is important.

Do you make empty threats?

How often do you find yourself telling your clients, “This is your final warning” or something similar? I’m willing to wager it’s a common occurrence, especially when future sales are at stake.

But let’s get back to basics. The most effective way to handle collections is through direct human interaction: a simple phone call to discuss payment, conducted with politeness, sincerity, and brevity. This is your relationship builder.


Commit to following up

When making these calls, it’s crucial to solicit a clear promise or response from the client. Equally important is your commitment to follow up, whether it’s to monitor a payment or schedule a follow-up regarding their inquiries. Consistency is key here. If you say you’ll call on a certain date, you must follow through. Likewise, if a payment isn’t received by the promised date, follow up promptly.

Clients take cues from your actions. If they see that you consistently honour your commitments, they’re more likely to do the same to the best of their ability. Keeping meticulous diary notes, maintaining a regular schedule for reminders and statements, are additional tools that reinforce to your clients that you are reliable and will always follow up as promised.

I am not saying it will happen instantly but it will still happen on most occasions.

That said, there is always an outlier who bucks the system and will dig in. They want to feel that they maintain the upper hand.  Then it’s time to regroup and change – either by changing the way you connect on a personal level or by having another member from within the team try to create the relationship.


The role of accounts receivable systems in meticulous follow-ups

Be committed an accounts receivable system you can rely on and use it to follow through on those commitments. By following a transparent interaction process and engaging management in the collection methodology, you’re more likely to have backing when the time comes to more stringent enforcement.

author avatar
Ian Hindle
I fell into credit management by accident as a 20 year old, and spent my career working for companies like TNT, Aus Post, Budget Car Rental, Seek, Brivis, Recall, and Iron Mountain. Whilst working in the industry as a credit manager and later as a consultant, I realised that there was a clear need for a high-quality, comprehensive product that could be used by businesses to streamline their credit management functions, but that none currently existed. And so, I made it my mission to create one. Whilst most businesses see results as being the end game, I believe that how you get there is also extremely important. With Kuhlekt, my goal is to take the hard work out of managing your business’s accounts receivable, cash management, credit control, and collection processes, making the journey to achieving real results as easy and seamless for you as possible.

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