How to create a persuasive message in collecting debt.

1. Collection messages
Nelly R. Emerson
Business Communications

2. Collecting money for the products or services
that you sell is critical to the successful
operation of a business.

3. How to create a collection
messages?

4. Two goals of collection policy:
To collect the money that is owed.
To preserve goodwill with the customer.

5. Collection policies
Apply to spoken
and written message.
The policies must reflect
state regulations and the
criteria established by
the Fair Debt Collection
Practices Act of 1978.

6. Initial invoice
that accompanies
goods and services
should clearly state
When payment is Where to mail
What is owed the check
expected

7. Example of an Initial Invoice
Usually the due
date is 30 days
from the invoice
Where to date.
mail the
check
Payment
Instructions What is owed

8. When a debt has not
been paid by the due
date, systematic follow-
up is necessary.
Collection messages are an integral part of company’s
collection process, and they should:
o Follow federal and state collection regulations
o Be sent at regular intervals
o Use an appropriate organizational pattern and message strategy
for each collection stage.

9. Three stages of Collection messages
Initial-Stage
A routine reminder written in the direct pattern.
Middle-Stage
It is a persuasive message.
Final-stage
It is an ultimatum and is prepared in the direct pattern of
organization.

10. Initial- Stage
Assume that receiver
intends to pay.
Send a reminder
immediately after the
payment deadline.
Send one or two friendly
reminders.
Call the customer to
determine the problem.

11. Middle-Stage
Open with a positive or
neutral statement.
Explain objectively without
accusation.
Point out the benefits of
complying.
Make courteous request
for action.

12. Final-Stage
Open with your course of action.
Restate the details of the money owed and the collection
attempts made.
Close with an assertive request for payment.

13. Thank You!
Reference:
Brantley & Miller. Effective Communication for Colleges 11th
edition.