Myth: An all-out collection effort
will collect almost every delinquent accounts. Reality: The time
to manage risk is before orders are released and preferably before
the account is ever opened. Once an order is released, the power
equation shifts and the customer is largely in the driver's seat.
Myth: It is both good manners and
appropriate to allow several days as a grace period before calling
a customer to ask about the status of a past due balance. Reality:
Grace periods are unnecessary. There is nothing rude or inappropriate
about asking a customer for payment status on any past due balance
Myth: Credit departments often upset
the apple cart by asking privately held companies for financial
statements. Reality: Request of this type are received routinely.
The most common "reaction" to such a request is to ignore
Myth: Salespeople have nothing to
contribute to the debt collection process. Reality: Salespeople
can sometimes bring additional pressure to bear to get a delinquent
customer to open a dialogue with the credit department.
Myth: Export sales are often more
trouble than they are worth. Reality: Foreign sales can be lucrative
opportunities for U.S. based companies trying to expand sales.
However, export sales often present significantly higher risk than
domestic sales, and it requires specialized skills and expertise
to control this risk.