As a thumb rule, always start a collections call by introducing yourself along with your company name and confirm the identity of the receiver. Once this is done, share the relevant invoice details with the customer. Here is a list of 5 most common defaulter excuses collectors hear every day, along with recommended strategies on how to deal with them:

1. ‘I haven’t received your invoice.’

Option 1: Resend Invoice Immediately Verify the customer’s email address. Issue the invoice again while the customer is on the line. Ask the customer to check the junk folder to ensure that your invoices aren’t getting blocked. Agree on a due date for payment and follow-up. TECH TIP: Self-Service Portal to Access All Invoices Enable an electronic invoice presentment portal, where all your customers could view and download all relevant invoices at any time.

2.’I haven’t paid because you’ve invoiced me incorrectly.’

Option 1: Negotiate Payment Plan, Fastrack Dispute Resolution Get all the relevant information such as the disputed amount and reason codes, from the customer to create a pre-deduction. Forward the deduction line item to your deductions management team. Ask the customer for a partial payment against the non-disputed amount. Get an agreement on the payment amount and date.

3.’The payment is approved but the signatory is unavailable.’

Option 1: Capture Payment Commitment Inquire about the availability of the signatory and when would he/ she be back in the office. Get direct contact information. Inquire about the availability of someone else who could sign the check. Collaborate with that person and get a payment commitment. Option 2: Leverage Next Order Blockage for Negotiation For a critical invoice, leverage the next order blockage to create a sense of urgency.

4. ‘I have the invoice but we are facing a cash crunch.’

Option 1: Negotiate Payment Plan, Ensure Customer Engagement, Alert Credit Team Inquire about the business to understand the reason behind the cash crunch. Make the customer understand that to ensure that their line of credit and next order are unaffected, they need to make some payment. Negotiate a payment plan that includes a partial payment at the earliest. Bargain as you have an upper hand. Add a self-reminder to follow-up with the customer. Definitely, contact your credit team to do an ad-hoc review and analysis.

5. ‘Payment has been/ will be processed.’ (Broken Payment Commitment)

If the payment has been made, Option 1: Capture Relevant Details, Track Payment Get all the relevant details such as check number, payment date and confirm the address it was mailed to from the customer. Contact your cash application team for payment confirmation. If confirmed, notify the customer, else add a self-reminder to look out for the payment and follow-up with the customer. If the payment has not been made, Option 1: Negotiate Immediate Action, Remove Payment Roadblocks Inquire if the invoice has been received and approved and if yes, if it has been scheduled for payment. Ask if there are any associated claims or disputes with respect to the invoice. Notify the customer that their account could be put on credit hold if the invoice is not resolved. Create a sense of urgency. Suggest ACH payment. Validate your customer’s intentions with some type of immediate payment or action. TECH TIP: Self-Service Payment Portal Enable a payment portal. Ask the customer to you electronically via the portal.