Maximizing Your Collections

By Chris McIntyre - April 7, 2022

Collections is one of the most important aspects of the BHPH industry. Selling cars is obviously important too; however, the ability to continually collect those periodic payments can make or break a BHPH dealer. Here are three tips for being able to maximize your collections potential:

Ensure your dealer management software (DMS) has the ability to send text messages. Being able to email and send letters to customers is important as well, but not everyone checks their mail or their email every day. The truth is many people are glued to their smartphones nowadays, and when they receive a text message they will see it. Being able to send a voice broadcast is also beneficial, but this requires the customer to answer the phone and/or check their voicemail.

Have a strategy for working collections. If you have several employees that work collections, assign them accounts that they can take ownership of and be accountable to. If you only have one employee that works collections, then they need to be held accountable for all the accounts. Create a reward system and set goals for each collector to give them incentive to drive collections.

Expect what you inspect. Don’t expect superior performance if you are not monitoring collections reports on a daily basis. This includes reports of customers that are past due, and deferment reports to see if your collectors are simply moving the customer’s due date to hide the fact that the customer is far behind in payments. Also, check reports that show payments being written off, as this could also distort true delinquencies.

Many DMS programs are not adequately equipped to handle collections, but with Deal Pack the process is streamlined. Deal Pack can send emails, print letters, send text messages, and send voice broadcasts to queues of customers. Please contact support at 800-526-5832 or to learn more.

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