For many credit and collection professionals, the idea of boarding a plane to visit a past due customer may seem excessive, outdated, or simply too expensive. In today’s world of emails, Zoom meetings, and mobile phones, many companies rely almost entirely on remote communication when pursuing delinquent accounts. However, when the balance becomes significant enough, an onsite visit can sometimes be one of the most effective collection tools available.
Several years ago, I worked with a client whose customer owed approximately $150,000. Communication had become increasingly vague, promises of payment were repeatedly postponed, and management was uncertain whether the debtor was genuinely trying to resolve the situation. At that point, I suggested making a face-to-face visit to the customer’s office in order to better assess the situation and determine whether a realistic payment arrangement could be reached.
Generally speaking, onsite collection visits tend to fall into two categories. The first is the unannounced visit. This approach may be effective when the debtor has been avoiding phone calls, ignoring emails, or repeatedly making excuses. In some cases, physically walking into the customer’s office without advance notice may finally allow the creditor to speak directly with the president, CFO, or another individual who has authority over payments. Even the simple act of appearing in person can communicate seriousness and urgency in a way that emails often cannot.
The second type is the planned meeting. When communication between both parties remains professional and constructive, requesting an appointment may be the better approach. A face-to-face discussion can help strengthen the relationship, clarify misunderstandings, and allow both parties to openly discuss payment expectations and possible solutions. In many situations, seeing one another “in the flesh” reinforces the importance of resolving the balance and demonstrates that the creditor is taking the matter seriously.
Of course, onsite visits are not appropriate in every situation. Travel costs, time commitments, safety concerns, and the likelihood of recovery must all be considered carefully. However, when dealing with a large balance and uncertain communication, an onsite visit, whether unannounced or scheduled, may provide valuable insight that simply cannot be obtained through emails, telephone calls, and Zoom meetings. Sometimes the most productive collection conversations still occur across a conference table rather than through a computer screen.
Your thoughts and comments (nseiverd@cmiweb.com) are most welcome!
Nancy Seiverd, President
CMI Credit Mediators, Inc.
All Rights Reserved
Image by freepik.com
