Late penalties: One of the highly effective — and underutilized — tools at Collections pros’ disposal.
Sure, most customer contracts contain a late-fees clause. But according to a survey from the National Association of Credit Management (NACM), 56% of companies don’t make their customers pay late fees.
While it’s understandable that many companies are hesitant to slap cash-strapped customers with extra fees, there are other ways to take advantage of late fees.
What to do: When a customer falls behind on a payment, have Collections call them up and offer to waive all late fees (be specific about the savings) if they can make a payment that day.
The gesture should help to get your customers paying faster — without ticking them off in the process.