Income tax refunds to debtors can be drawn upon to settle a balance when you dun and do a proper follow-up. Indeed, You can actually triple your collection amounts during tax season!
In January, pinpoint the accounts that might have refunds coming. Include a question in the “facts” part of your call as to whether the debtor expects to get a refund. Then keep tabs on them and in your conversations repeatedly confirm that they will use the refund to pay your bill. Watch out for “reduction tactics” which the debtor may try around the time he expects the refund check to arrive –
“I just found out that the refund isn’t going to be as much as I thought,” (sounding sincerely disappointed.)
You should then request immediate documentation of this lower figure and inform the debtor that further collection procedures will now be implemented. Then discuss other ways the debtor can come up with the money.
If the debtor becomes evasive or doesn’t respond to your messages around the time he expects his check don’t hesitate to call him at work. If you haven’t been “ceased” from doing this (see pages 24-25).
You need to stay on top of this situation because you’ll often find yourself competing with collectors from other businesses who are also after this guy. Those who are most efficient, who are firmest in their demands, are the ones who’ll bring in the bucks.
About the Author
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Let 15-year collections pro Jim Finucan show you how to double – even triple- the amount of money you collect from your accounts receivable. Check out his unique collections manual “Past Due” shows you how to handle all their excuses. For more information visit: http://www.tiare.com