Archive for April, 2020

How to Handle Collections in Today’s Corona World

Takeaways from Lisa Spiwak’s Talk April 26, 2020

Lisa Spiwak, a Los Angeles attorney specializing in collections, shared how to optimize the collections process in the midst of the Corona pandemic. Calling it art, not science, Lisa offered immediately actionable recommendations as well as best practices for ongoing customer relationship building.
Tom’s Top Takeaways:

Temper Your Approach for Receivables Calls
Open the call by asking how they are doing, and how their business is affected by the pandemic. You do this for two reasons: it shows that you care, which better enables a more productive follow-on conversation, and the customer is more likely to share about the state of their business.

Something is Better than Nothing
If your customer asks to defer payment, don’t say yes. Instead, reflect on the impact on you and your business, and suggest they pay something. The amount depends on the nature of your relationship. The customer is likely to juggle multiple creditors. Your goal is to be among the creditors being paid.

Communicate as Your Customer Prefers
Use the communications method that your customers prefer. If you are working with boomers, you’re probably going to pick up the phone. If your customers are millennials, they may be most responsive to an email or text.

Warning Signs to Watch for
If you’re reaching out to your customers, and they are not responding, this is a big red flag in terms of securing their commitment to a re-payment plan. It’s at this point you may need to express your concern for the non-response and articulate the consequences. That communication might start with “I’m not comfortable doing more work under our agreement until I can touch base with you.”

Use This Slow Time to Revisit
Now is the time to get your written agreements in order. (This should be done annually.) Are they current? Are they signed? Should you need to take action against the customer, you will face challenges in court over agreements that don’t specify terms of payment and that aren’t current and signed.

Four “Must Have” Items for Effective Written Agreements
When revising written agreements, Lisa itemized the four items that most people don’t know to include.

Watch the presentation replay to learn more!

Organizer – Tom Reynolds
Moderator – Linda Feinholz
Communication Director – Kenis Dunne

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admin on April 26th 2020 in NEXGEN - On Day 91