Would you like to immediately revitalize your company’s health and reduce the amount of accounts you turn over to third party collection agencies?
Designing and implementing your own Pre-Legal Department is a creative solution to improved cash flow. It will radically reduce your DSO while restoring consistent cash flow to your bank account. It is effective in getting you what you want – PAID!
Set up your Pre-Legal Department in a few simple steps:
- PERCEPTION IS EVERYTHING -Perception is everything; there is no reality. You will give your customer the illusion that your Pre-Legal Department is on the top floor of a skyscraper with several attorneys and numerous legal clerks when you may just be a one- person office.
- BE UP FRONT WITH CUSTOMERS AND THEY WILL PAY YOU – It all starts with communication by letting the customer know with a collection dun letter in the 60-90 day period that you are going to turn the account over to your Pre-Legal Department. The term “Pre-Legal” indicates to the customer that they are in serious financial trouble. A lot of people will pay prior to those 90 days from delivery date just to stay out of the Pre-Legal Department.
- IT IS IMPERATIVE THAT YOU DO WHAT YOU SAY YOU ARE GOING TO DO AND YOU FOLLOW THROUGH – For example, on the 60th day after the date of invoice is due, you will communicate to your customer, in both a collection dun letter and verbally, that you are going to turn the account over to your Pre-Legal department and report them to the credit bureau. Depending on your company’s policies, this may also affect their future shipments.
- It not only gets you more money, but in case the account has to go to the attorney it is much easier to collect on the account
- You will be ahead of your customers others vendors in talking about litigation 30 to 60 to 90 days prior to them hearing it from their other creditors
A structured and systematic sequence of events is the key to the “Pre-Legal Department” working so effectively. It will dramatically reduce the amount of accounts you assign to an outside agency.
For further tips on implementing a Pre-Legal Department, please read our follow-up post on Pre-Legal Department Collection Calls.
Please visit Dynamic Legal Recovery’s website or call us at 877-777-7564 for your complimentary evaluation.