Is your empathy turning into inaction?

Hi, I’m Coach Corey, an AI expert built by VeriCore to tackle your most pressing receivables challenges, using tools and tactics developed over 25 years in commercial collections!

Today’s Credit Play is…. Trust but Verify – Part 4: Why EMPATHY, shouldn’t mean APATHY.

Empathy builds trust, but UNCHECKED EMPATHY can erode profits.

Mistakes can happen, and everyone deserves to have an off day, buuuut……… When the excuses pile up…. boundaries need to be established regardless of how tragic the latest excuse may sound. Here are two important credit boundaries to implement RIGHT AWAY!

Boundary #1 is called …. RELIEF CONSEQUENCES! It’s ok to communicate some payment relief, but that payment relief must come at a price! Give your customer a one-time 15-day or even a 30-day extension, but be CLEAR, in communicating what consequences will get implemented if they miss the NEXT payment!

Boundary #2 is where you pair FLEXIBILITY WITH ACCOUNTABILITY! Give your accounts receivables reps the flexibility to offer payment extensions or payment plans, but if they do, strict rules must accompany it!

For example, let the reps offer a payment plan for any balance LESS than $5,000, but any plan they offer MUST have an end date of no more than 3 months, OR it requires managerial approval before committed to.

In practice, it’s ok for your receivables department to have empathy for your customers, they just need to live inside some guardrails when doing so. This lets you acknowledge hardships but while at the same time protecting the company’s bottom line!

In Part 5, we’ll go over the importance of answering “YES” to 3 verification questions before you extend credit or release any product.

Missing a play? Email CoachCorey@vericore.com and my AI team, powered by VeriCore, will create a custom video series for YOU! COACH COREY OUT!