Work instead of being a boss

Chapter 20 Collection of Accounts and Fund Raising (1)
In the eyes of a businessman, no matter whether you are making money or losing money in business, you can't pay on credit. This is the experience of those who make money.The most important problem for a businessman is to obtain the maximum profit with limited funds in the shortest period of time. Regardless of whether the funds are owned or owned by others, they must strive to achieve the maximum rate of return and growth rate.In the course of business operation, the higher the recovery rate of capital, the more profit can be obtained to the maximum extent.The recovery of funds is relatively slow, and the efficiency of fund use will drop sharply. In addition, there are too many backlog products or too large fixed assets, which will also affect the effective use of funds.

Businessmen agree that the more business the better, people often evaluate a businessman by focusing on its turnover, growth rate and profit.A company can do business every day, but the problem of capital recovery is often ignored.For such a business, the result is a flood of orders, but it does not mean a large inflow of cash.If nine out of ten customers have poor cash flow and cannot pay off the goods in time, then your company will have very serious cash flow problems.Doing business is not easy. You must find out the debtor's situation and psychology when collecting the debt, and don't force it.If the accounts receivable cannot be cashed in time, a debt relationship is formed between the company and the customer.This is a very headache for all business owners.

How to straighten out the relationship between the two parties and solve the debt problem?
A shrewd businessman believes that, first of all, he must have a comprehensive understanding of the debtor's situation.Debtors include both citizens and legal persons. Because legal persons are composed of individual citizens, their psychological status is generally not much different, but their circumstances and psychological manifestations are different.

Debt disputes between legal persons generally involve disputes between creditors and debtors over certain aspects of creditor's rights and debts.This kind of dispute can be caused by the fault of one party or the fault of both parties; it can also be caused by a wrong understanding of one party.

In this case, since both the creditor and the debtor have a certain economic purpose, it can generally be resolved by presenting facts, reasoning, and distinguishing right from wrong.If the two parties fail to negotiate, it is generally easier to implement an agreement or award through mediation, arbitration and litigation.When dealing with this type of debt, we must seize the time to avoid excessive losses, otherwise it will cause difficulties in resolving disputes.

Insolvency is another situation where, due to various reasons, the debtor has become unable to repay.The causes of insolvency have their own reasons: such as poor management, demolition, waste, internal disputes in various economic unions or private companies, etc.; there are external factors: changes in market prices, changes in plans, Be deceived etc.

The mentality of such debtors towards debts can be divided into positive ones—that is, trying to repay the debts; negative ones—that is, indifference and indifference.For active debtors, we can help and support them as much as possible, and strive for the debtors to pay off their debts as soon as possible.Pressure should be exerted on negative debtors to take legal measures as soon as possible.

Deliberate delinquency refers to a legal person with repayment ability who seeks various excuses to delay performance of obligations.In practice, it is often encountered that the debtor claims that he is unable to perform, or promises to perform but changes his mind when it is due;There is another common phenomenon of deliberate default, which is to hide from debt collectors.

The mentality of this kind of people is: grind as much as you can, procrastinate as much as you can, pay as little as you can, and don’t cry when you see the coffin.For intentional defaulters, in addition to taking strong measures to make them feel that their failure to perform their obligations will affect their business activities and damage their personal reputation and morals, it is the most effective way to ask the state for compulsory sanctions.

Deliberate deception refers to the purpose of defrauding people from the beginning to defraud property.Attempt to use legal means such as contract disputes to achieve illegal goals.For such debtors, they must not be allowed to grasp the creditor's eagerness to collect debts, or compromise with them or even cover up their crimes for them.The consequences of doing so not only fail to achieve the purpose of recovering the arrears, but also increase the difficulty of paying debts and make criminals more rampant.

In fact, the situation and psychology of the debtor are quite complicated and are constantly changing. It is difficult to give an example here, but what needs to be pointed out is: when the subject of the debt is a citizen or the citizen uses the name of a legal person and the actual debtor is a citizen, the debtor flees in hiding or even is arrested. Detention and sentencing have occurred frequently, which has brought huge disadvantages to debt collection. In this regard, the determination and will of debt collectors play an important role in debt collection, and resorting to the law as soon as possible is conducive to reducing losses.

In addition, in the case of death in practice, the succession law has principled regulations on who should bear the debt after the debtor dies. Generally, those who inherit their property should also bear the debt of the decedent.If the heir renounces the inheritance, he may not assume the debts of the decedent, but if the debtor has handed over his property to a third party in various ways, if possible, the law stipulates that the property of the creditor should be returned, and the creditor should try his best to pursue.

Doing business is not always a cash transaction, and inevitably a considerable part of the payment is in the hands of the customer.Company managers must master a set of superb skills in collecting accounts. Only when the accounts are in hand can the final realization of profits be guaranteed.

Here are [-] tips for successful collection:
Appointment of collection and payment time "regular visits" is the basic introductory skill for operators to successfully collect payment, so it is included in the first essentials of collection.When the operator agrees with the customer on the time of collection, he must treat himself and others.When the seller arranges to collect the payment, he should choose a time that is convenient and appropriate for both the customer and himself.If you blindly follow the customer's time to visit, it is easy to give the customer a bad impression of "following the crowd", but you can't force the customer to cooperate with your own time and offend the customer.

In other words, it is the practice of a smart businessman to find a time of collection that is beneficial to both parties.

The accounts should be confirmed in advance before receiving the payment. The traditional payment method is that the seller presents the relevant credit certificates to the customer's place of business - order form, delivery note, receipt and unified invoice, etc., for the customer to check one by one. After the customer confirms that the "subsidiary copy" he owns is correct, the invoice will be issued or the cash will be handed over to the seller.The biggest disadvantage of this face-to-face settlement method is that the seller must accompany the account checker and check with the customer one by one, which results in a waste of a lot of precious time for the seller.

In order to overcome this shortcoming, the seller can prepare the customer's "bill list list" before the agreed collection time, and record the order date, quantity, unit price, total amount, uniform invoice number and other items in detail in the table, and mail it to To customers for their verification of payment.After receiving the "Bill List Details", the customer can check first. If the content is correct, the customer can sign the invoice or prepare cash in advance according to the payment period agreed by both parties. When the seller comes to collect the payment on time, both parties The work of payment and collection can be completed in a very short time.Of course, when customers have doubts about the content contained in the "Bill List Schedule", they can immediately call the seller for advice.In this way, it can save the time of face-to-face reconciliation between the two parties.

Collect first and sell later In order to effectively use time, many smart sellers often use the same opportunity to visit customers to do "one fish, two meals"-sales and collection at the same time.Its advantage is that it can save the visiting time for a special trip to collect money. Its disadvantage is that it is two boats, and the results of both ends often fail.Therefore, to implement the strategy of "one fish, two meals", we must adhere to the principle of "receive first and then sell": first settle the previous payment with the customer, and then further explore the needs of the customer, so that the goods can be sold smoothly.There is a business proverb "a sale begins with getting paid for" which is the best footnote of this principle.

The seller occasionally encounters some customers with poor economic conditions. These customers will recite the "losing money scripture" and say: "When my situation improves a little, I will take the initiative to call you to inform you." Come to collect the payment..." There is no payment date, and the words are vague.

In the face of this situation, the seller must be particularly careful and guard against it, and must not fall into the trap, and must use the tactics of "full-court pressing and man-marking".According to the customer's economic situation, installment payment can be considered, but the customer must be required to clarify the amount payable and the payment date of each installment.This kind of "breaking the whole into parts" payment method will not cause too much financial trouble for customers.Since the amount and date of each installment of the customer's payment are clearly stated in the contract, the customer is asked to sign the contract, which increases the pressure on the customer virtually. It is a more effective method to recover the arrears of payment.

Customers who pay first and then make discounts are most greedy for petty gains. When paying, they either refuse to pay for fractions or digits, or lower their requirements for discounts that have been negotiated in advance.This kind of customers think that they can win as much as possible, and they will fight for it by any means, and they can sacrifice the interests of others for their own interests. As long as it is profitable, they must try to deduct the payment at the time of payment.

To deal with such customers, you may wish to take the following countermeasures when collecting money:

In a friendly tone and a firm attitude, explain to them the long-term benefits of paying according to the contract terms; verify whether the customer has a "conviction" for short payment in the past; Compromise; customers have poor credit and often underpay, so it is best not to accept the customer's request for a discount, so as to establish a collection image of "buying and selling points".For this kind of customers, you might as well "be courteous before serving as soldiers" and "exert high pressure", and must try to recover all of them. Absolutely not to tolerate adultery, which will add more troubles to future collections.

Patiently seeking sarcastic customers often say bitter and sarcastic words when the seller collects money, such as meager profits and poor sales, in order to get the receiver to give special discounts.

For this kind of customers, the countermeasure for implementing payment collection is: listen more and let them complain moderately.Sarcasm to relieve their psychological depression; provide customers with the secret of increasing sales and explain the importance of "working together"; stimulate their "honor" and make them understand that paying on time and according to the agreement is a concrete manifestation of treating customers well; attitude, praise the suggestions provided by customers, and tell customers that they will try their best to adopt their opinions in the future and meet their requirements as much as possible.

Complimentary, high-spirited customers often adopt a "buyer is king" arrogance when dealing with checkouts.The reason why such customers behave like this is often because of their inferiority complex.To deal with such self-proclaimed customers with eyes on top of their heads, when collecting money, you may wish to follow the steps below:
Say more "flattery words" of praise and gratitude, and try to dissolve their defensive psychology.Keeping a distance of "invisibility" makes them feel "different".Ask them more about their successful experiences and be a good listener.Provide a lot of specific and effective services, so that customers know the value of their own existence, and let them understand the importance of their own.

(End of this chapter)