OUTSOURCING ACCOUNTS RECEIVABLES

 (Sample LW/Telephone Follow-up Program)  

One of our greatest growth areas in the last two years has been the handling of customers' cleanup or small dollar collection needs through use of our Letter Writing Program. We've designed a letter writing program which improves upon the negatives of most programs provided by agencies. The Letter Writing Program usually falls within two categories i.e. a series of three letters or a series of two letters plus a closing telephone call. Because this is a PC driven program, it is flexible and can be tailored to fit the specific needs of customers.

I would suggest the following basic program:

(1.) An introductory dunning letter would be sent a few days into the delinquent collection process.

 

(2) At approximately fifteen days after the initial letter was mailed, a second collection

letter would be sent with a gradual escalation of content. 

(3) At 30 to 45 days from the initial collection letter, a final demand letter would be mailed. 

(4) At approximately 60 days, Diversified Credit would make a telephone contact with the debtor thus completing the collection cycle.  

Our philosophy in using Letter Writing/Telephone Follow-Up Programs is to keep it basic from a timing and reporting perspective while doing so at the lowest possible cost to customers.

KEY FACETS OF OUR PROGRAMS ARE AS FOLLOWS:  

Collection Letters:

(A) Customers can use our series of collection letters or design their own. These letters will include payment and telephone information so the debtor can contact and forward checks to the proper location.

(B) Detailed reports are sent to customers listing the accounts in alphabetical order by account name. One sheet accompanying these reports is used as a control document which is returned to Diversified Credit indicating who has paid after each cycle. This document triggers the second or third follow-up letter as required.

(C) Letter writing costs are low in comparison to industry standards. Our customers are only billed after letters and reports have been mailed. We guarantee a 48-hour turnaround from receipt of reports to the mailing of letters and the support documentation.  

Telephone Collection Program:

(A) We tailor our telephone calls to fit customers' needs. Some companies request a low-key conciliatory call while others want a much stronger approach to bring matters to a head.

(B) If needed, a brief report could be provided (at a low additional cost) indicating final comments by the debtor.

~ Letter Writing Program -Based upon volume, certain price breaks can be given. Normally, the program will include all mailing costs, reports and associated materials for $3.00 per letter.

Telephone Contact --As a conclusion to the Letter Writing Program, a telephone contact could be made at a price of $3.00 per call. Please remember, this is a sample program. It can be changed to fit your company's needs.