How foreign trade salespeople can efficiently collect payment: skills and strategies
In recent years, the global economic downturn has become an unchangeable reality. As this reality gradually extends, employees engaged in foreign trade business are facing increasing collection problems. As the saying goes: “It’s all the grandfather who is in debt.” This saying has a certain truth from ancient times to the present, both internationally and domestically. So how should our foreign trade salesmen make collections easy? What other collection techniques are there?
1. Learn to write foreign trade collection letters
Different from the main domestic contact method of making phone calls, foreign business cooperation mostly uses business emails, and the same is true for foreign trade transactions. Then our foreign trade personnel need to learn to write foreign trade collection letters.
First of all, pay attention to the tone of the letter. Demanding payment is a normal business behavior. Don’t beg the other party for payment like a beggar when sending an email. However, even if the other party defaults on the payment, you should be friendly and prompt. Second, the content of the email should be straightforward and straight to the point. It should directly explain the amount of the goods and the previously agreed payment date. It means that the foreign trader has delivered the goods as agreed, but the other party’s payment has been overdue, and the responsible party is the customer. If the other party has sent the payment check, but it has not yet reached the foreign trade dealer due to logistics problems, ask the other party to ignore the reminder email. If the check has not yet been sent, ask them to arrange the procedures as soon as possible.
2. Choose different dunning techniques for different dunning objects
Different dunning targets also determine different dunning techniques. If the customer is a boss, dunning is required. Then the foreign trade salesperson needs to explain to him in a friendly manner that the other company already owes the payment for the goods. Make an appointment with the boss to give the other party a time limit for payment in time. If the time limit is up and the payment is not made, then call him again to urge him. He pays, and doesn’t overdo it, lest they tear each other apart and the other party will keep defaulting on the money. Assuming that even a cheating boss fails to pay on time, then justice must be resorted to. If a foreign trader faces the financial personnel of a client company, he should first send an email to the other company explaining the debt. Let the other party’s financial department go through the process in a timely manner; if the customer defaults on the payment due to problems with the company’s funds, then don’t get angry with the financial staff and just go through the legal process.
3. Understand the reasons why customers pay late
No matter what the reason is, there are certain reasons for defaulting on payment. Before doing foreign trade collection, you must first find out the reason for the overdue payment. Is it due to the foreign trader’s negligence that caused the customer to be dissatisfied with the product, or is the customer company strapped for funds or even deliberately failing to pay. Different collection methods are used for different reasons for arrears. If it is due to the product of our foreign trade dealer, then we will try our best to cooperate with the customer to return the product, try our best to make the customer satisfied with the product, and let the other party pay on time; if the other party’s funds cannot be turned over, we will You can also give them a deadline to make the payment after they have working capital. But the deadline must be determined; if the other party has been a customer for many years, you need to make an immediate decision and go through legal procedures or recall the goods. Don’t be afraid that the other party has not threatened not to supply the goods, and try to minimize the loss.
In fact, not every customer who defaults on payment is intentional, and some customers may really default on payment due to forgetfulness, omission and other reasons. At this point, an appropriate reminder may help the seller resolve the issue. If the other party defaults on payment due to dissatisfaction with the cooperation, the seller should inquire promptly so that timely redress can be made. Providing services that satisfy the other party can, on the one hand, prompt the other party to pay the balance, and on the other hand, it can also maintain a good cooperative relationship so that we can continue to cooperate next time. If the other party deliberately defaults on payment, the seller needs to enter the collection process.
4. Find the right dunning target
The choice of dunning object is very important. If the seller finds a small employee of the other company, the small employee has no decision-making power and a very low voice. If the seller presses for payment, the other party may not be able to solve the problem. Therefore, when choosing a dunning partner, it is best for sellers to go directly to the boss or financial director of the other company.
5. Collection methods
After all, they are partners, and most sellers are not willing to make an ugly scene with their customers. Therefore, sellers need to adjust their response strategies based on the reasons given by the other party. If the other party says it is due to a shortage of funds, the seller can agree with the other party to pay in installments. The effect of overcoming strength with softness is often better. If you sell it hard and tell the other party your difficulties, you can also encourage the other party to pay. If the other party is still unwilling to pay after multiple reminders, the seller needs to be tougher. Act in accordance with laws and regulations, give the other party a limited period of time, and tell the other party what consequences they will face if they are unwilling to pay. If this method doesn’t work, the seller may need to seek specialized, formal, and legal agencies to handle the matter.
The above are the tips and strategies on foreign trade dunning compiled by the editor. I hope it will be helpful to you!