As a credit and collection professional, getting your sales team, manager or representative involved in the collection of a past due account can range anywhere between successful to disastrous.
Following below is a general guideline as to when it might be advantageous for a salesperson to get involved for your consideration.
Early-Stage Delinquency (1-15 Days Past Due) – If a customer has a strong relationship with their sales representative, it can be beneficial to involve them early, especially if the delay is due to technical problems against the product or service sold.
Middle-Stage Delinquency (15-45 Days Past Due) – If standard collection efforts (emails, reminders, and follow-up calls) are not getting results, the sales manager may need to step in to stress the business impact of non-payment. In addition, sales involvement is particularly useful when a customer is disputing an invoice that has a complicated sales background.
Late-Stage Delinquency (45+ Days Past Due) – At this point, the customer’s financial stability may be in question. The sales rep or manager can use their relationship to determine if the customer is experiencing cash flow issues, ownership changes, or potential insolvency.
When It May Not Be a Good Idea to Involve Sales
- If the customer is being evasive or dishonest, it’s best for credit to handle the situation and escalate it through legal means if necessary.
- If a formal demand for payment has already been issued or the account is with a collection agency, sales involvement may undermine legal efforts.
Sales representatives and managers are valuable allies in collections, but they should be involved strategically and as a relationship-based leverage point. Their role is most effective in understanding customer issues, negotiating product and service solutions, and reinforcing the importance of maintaining a strong business relationship.
Your thoughts and comments (nseiverd@cmiweb.com) are most welcome!
Nancy Seiverd, President
CMI Credit Mediators, Inc.
All Rights Reserved
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