Management of a collection department?

First of all you need to know about your customer, to classify A,B,C. A denote like supplier is good pay master, 'B'denote average kind of supplier in payment and C is the coustmer who will pay once you put pressure on them only. Once you find, use diffirent stategy to get your payment.

In the collection, first is you must process the application knowing the history of your customers like their source of payment, their exact address (if they are just renting or they owned the house and lot), their present work, their previous address, how many members of the family are there, how many children are they and how many of them are currently studying or currently working. After you established the history of your customer, next to establish if they have a capacity to pay their obligation. In order to confirm if they the capacity to pay you required them to submit their proof of income like payslip if employed, remittance slip if remittance receiver, business permit if self-employed, proof of pension if pensioner. Once you secured those requirements next to establish is their capital if they have real and personal properties to back up their obligation. And lastly, you should discuss with them the terms and conditions of the item they acquire like the downpayment, monthly amortization, the due date of payment, promissory note value, total price, interest charge and the warranty covered and period.

After processing of the application next is collection time. As a collector, you must be familiar with the due dates of payment of every customer. Before their due dates, you must visit or call them thru call in order to remind them of their due date of payment to ensure that their payment always updates. And just in case they are failed to pay on their due date of payment you must be prepared on how to collect them as soon as possible. You must be a good arranger and a good negotiator to your clients, be professional always and avoid being arrogant. You must steak always in the contract of the agreement made during he/she applied.