What is Collection Process?

As I am not so good in English but I had given my best explanation about the topic collections. A process where an executives informs the customer through telephonic conversation about the due of debt, and tries to convince them for the payment is known as Collections.

Types of Collections: There are two types as follows:

i) Telephonic: It involves calling to the customer with a motive to collect the debts of their outstanding through a medium of telephone.

ii) Field: Here an executive is being sent to the residential or office address for the collection of debts. It is only for the non - contactable customer, where there is no communication between the creditor and the debtor.

Disposition: An abbreviation used to make entries regarding what has been happened on the call is said to be as a disposition

Types of Disposition: Below are the list of disposition as follows which are tagged on each and every call as per the call condition

i. Promise to Pay (PTP) - It is tagged when a customer promise to pay the dues on a date as mentioned by the agent.

ii. Refusal to Pay (RTP) - It is used when a customer refuses to pay the money for that month

iii. Call Back (CB) - When customer said to call after some time we have to dispose the call as CB.

iv. Left Message (LM) - Any party other then the customer said to call back, then it is dispose as LM

v. Sit tone (ST) - When an agent hears a sit tone on the call it is called as ST.

vi. Wrong no. (WN) - It is mostly used when the given no. is not used by the customer.

vii. Claims Paid (CP) - If customer has already clear his dues we tagged it as a CP.

Modes Of Payment: There are different modes by which the dues can be paid. Some of the common modes of payment are described here as follows.

Cash - It is an easy and non risky mode of payment which is almost used everywhere around the globe.

Check - In this method it is convenient for the customer, but risky for the companies as there is no guarantee whether it will become clear or not.

Demand Draft - After cash it is the second option which every company gives to the company as a demand draft never bounces, because its a reserved money made in favor of the receiver.

Online Payment - It is an easy, most convenient and time saving option for the customers, as it only requires an internet access, you can also go to the computer cafe for the payment of your debt.

Bounce Charges: This is an amount charged to the customer when he makes his payment after the due date given. Suppose if due date is 5 of every month, and there is not sufficient funds available in the account then it is to be counted in the bounce charges, and a small amount is charged as per the companies policy.

As by this we have completed in short a description of collection process. I am sure it will help you to lead through your bright career.