Yes, winter is coming. Season 5 of HBO’s series Game of Thrones begins this coming Sunday, April 12. “GoT” is one of my favorite series, and I cannot wait to see how this season plays out. It is essentially a series about power, those who have it and those who want it. Our small business customers have a good deal of power, although they often do not use it to their advantage. 

When customers do not want to pay, they will disappear. If you do not have contact information for them, you have no way to contact them for payment. Also, in the new world of mobile technology, some people switch out phone numbers often, and you will need a way to research and find out new contact information.

Busy small business owners often forget to collect enough information upfront about their customers. Customer intake is the first crucial part of the credit transaction, and if someone places orders on the phone with you, we strongly recommend that you gather all the contact information you can, and at least street address, multiple cell numbers, and email. Take a minute to confirm the information back to the customer by email or fax. It is also a good opportunity to confirm some basic details of your business relationship, such as the cost of your service. If you do not have time to execute a full contract, at least have include a place for the customer to agree that they will pay for your service, and that they will be charged interest/collection costs on past due balances. Make sure customers acknowledges the terms with a signature or return email.

Even with the best efforts, customers often disappear and move away, or disconnect the phone. It is estimated that over 50% of accounts sent to a collection agency will need some sort of skiptracing, or research, to find new contact information. There is a good deal of information to be obtained on the internet, but to really find someone who does not want to be found, you need an expert. If you are looking to hire a collection agency, make certain that they include skiptracing debtors as a part of their service. Never pay an additional fee for research. 

Another way to waste your power is to keep delay sending an account to collections if you have made dozens of phone calls to a customer. Set a limit and then bring in the pros to escalate the process. 

Cersei Lannister, one of the main characters in Game of Thrones said, “If you play the game of thrones, you win, or you die”. To a small business, it is not nearly as melodramatic, but if you play the Game of Phones, you are unlikely to succeed in getting paid. 

Looking to hire a collection agency but not sure where to start? We can help!