BPPG guidance takes the pain out of chasing debts by phone

The Better Payment Practice Group [BPPG] has provided new guidance to businesses on using the telephone to speed up the collection of debts from late paying customers.

The new telephone collection sheet, launched on the BPPG’s website www.payontime.co.uk, sets out and prioritises the key information which the credit manager should have to hand when telephoning their customer, such as the account number, the credit limit available to the debtor, the invoice date and the balance due. In addition, the sheet provides space to log the responses given by the debtor*, enabling the credit manager to keep a comprehensive record of their correspondence.

The BPPG also provides businesses with the following tips for telephone collection:

• Be systematic – incorporate phone calls into your collection strategy. A good strategy will timetable appropriate dates for issuing invoices, making phone calls and issuing reminders.

• Be prepared – check that the information relating to the outstanding debt is correct, and that the information is readily available when making the call.

• Be courteous – remember that every contact your company makes with your customer can add to your existing relationship. A professional but friendly approach can earn your debtor’s respect and cement loyalty.

Peter Rowe, Director General at the Institute of Credit Management and member of the Better Payment Practice Group commented, “Telephone calls to the debtor are one of the most effective ways of speeding up the cash collection process as they provide an opportunity to make direct and personal contact with the individual responsible for payments at the debtor’s organisation.”

To view the new telephone prompt sheet on the BPPG’s website, please click here

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