"Defer no time, delays have dangerous ends."

William Shakespeare (1564-1616) English playwright & poet

The Bard. I'm sure he wasn't thinking of your aged trial balance when he wrote these lines, but can you think of 7 words that sum up the essence of credit and collection more aptly? William Shakespeare was born in 1564, in Stratford- upon-Avon. Located in the centre of England, the town was (and still is) an important river-crossing settlement and market centre. The register of Stratford's Holy Trinity Church records Shakespeare's baptism on 26 April. He is traditionally said to have been born on 23 April. His father, John, trained as a glove-maker and married Mary Arden, the daughter of Robert Arden, a farmer from the nearby village of Wilmcote. John and Mary set up home in Henley Street, Stratford, in the house now known as Shakespeare's Birthplace.

John Shakespeare was a prominent citizen, serving on the town council for many years and becoming Bailiff, or Mayor, in 1568. Besides his craft as a glover, he traded as a wool dealer and was also involved in money-lending.

Lawyer bashing

There are literally thousand of lines to quote from Shakespeare. There is one however, that gives a historical perspective to what we now refer to as Lawyer bashing. I hope my good friends who are lawyers and without whose help I would be out of business will take this in the jocular spirit in which it is offered. Just remember, I am not the author:

The first thing we do, let's kill all the lawyers.

- Henry VI, Part 2, Act IV, sc. ii

We have a packed issue on tap this month. First we have a few wise words from William Shakespeare that can be applied to collections. Then we take a look at negotiation skills and how (when properly used) they can be a tremendous asset to the debt collection process. Finally, we have an announcement concerning the International Association of Commercial Collectors (IACC) Board of Directors. As always, we welcome any comments, suggestions and/or questions you may have concerning our newsletter and industry issues in general.

Comments, Suggestions and Feedback

How are your negotiation skills? According to the dictionary, a negotiation is a discussion intended to produce an agreement. As credit professionals, we find ourselves involved in negotiations every day. The majority of negotiations become a brief, unprepared argument. The phone rings and you're put on the spot. In two minutes it's over and you're talking to the next customer. How many of us have actually worked on our negotiation skills? Does your credit department have a published procedure concerning negotiation? Do your employees have the authority to solve a problem when they are at an impasse?

Here is a quick review to get you thinking. We are negotiating for:

1. Payment in full, or

2. A partial payment with a definitive outline of how the rest of the debt will be paid.

You'll win more negotiations if you prepare for the call before making it. Here are some tips:

1. Know your goals and prioritize your objectives.

2. Review your documentation.

3. Be clear on the issue of why the debtor is not paying.

4. Have information where you can access it easily.

During the conversation:

1. Listen to your debtor and take notes.

2. If they suggest a prolonged payout, you should suggest a personal guarantee if you don't already have one in place.

3. Aim high.

4. ASK FOR PAYMENT IN FULL!

Successful negotiations involve knowledge of the subject. They are part of your internal collection procedures and your employees should be aware of your expectations. Present them with specific guidelines. Let them know the parameters within which they can "give & take". Giving too much away, or referring a negotiation to a higher authority has an undermining effect, and customers don't respect it - they take advantage of it. The urge to maintain a friendly, highly amenable relationship with the customer above all else is a trap that must be avoided. It's human nature and your delinquent debtor will use it to their advantage. It is possible to maintain a friendly, helpful relationship while at the same time being very firm in negotiating the business. After all, it's nothing personal, it's strictly business!

Delta Recovery Systems is very proud to announce that CEO and President, David Ward, has recently been named President of the International Association of Commercial Collectors (IACC), the largest organization of commercial collection specialists in the world. Congratulations, David!