Tuesday, February 5, 2013

Good Debt Collection: Something You Can Learn Or Are You Born With It?




Do you ever wonder what makes one debt collector more successful than another?  Ever consider what they do to get receivables cleared and money coming in?  What does a successful company do differently than one that isn't?   Is it something they have a natural talent for or did they go to school for it?  With several discussions and interviews it seems to be a combination of natural personality traits as well as techniques people can use.  When you’re hiring an agency or an individual there are a few things you can look out for that will help insure you work with the right people. 

It is true that there are some natural tendencies people are born with that will help them be more successful at collecting on debts.  Some of the personality traits that lend themselves to debt collection are:
  • Self-motivated and able to work independently
  • Diligent
  • Can separate business from personal affairs
  •  Organized
  •  Doesn't anger easily
  • Can see through situations that are complex

Some of the skills that are taught that help with debt collection are:
  • Good skills with customers
  • Understanding of company policies
  • Sales and marketing
  • Basic accounting understanding, especially receivables
  • Ability to research claims
  • Techniques for skip-tracing

Generally speaking the two largest assets that are going to help a debt collector get accounts receivable in order are patience and perseverance.  Making the calls and sending out the letters consistently until items are checked of your list and money is being deposited.  When hiring debt collectors it’s important to know that perseverance and self-motivation aren't skills that can easily be taught. 

In addition to having some of these natural tendencies there are certainly skills that will need to be learned.  A solid understanding of the legalities of both the state they are working in as well as federal law will go a long way with helping insure the debt collection is done well and properly.  

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