Upon a recent visit to a client, I had the opportunity to talk with an employee who spoke excitedly about just how much she loved her job. "I get to spend all day on the phone talking with my friends around the country, and my boss pays me to do it!" she reported.

What does she do? She is a collector in the credit department. Her friends are the customers she calls for payment. I visited her office and saw her bulletin board--completely covered with snapshots of children--all the way from infants to teenagers. Who were they? You guessed it. The offspring of her friends--the company's customers.

Editor's Note: This article originally appeared in the Credit & Collection Manager's Letter, which Credit Today purchased in 2006.

Collections is a sales function, not a financial function. In the 1970s, with a strong background in sales, I began working for a collection agency. I was one of four collectors. One of the collectors, a veteran, had it arranged so that he received 50% of all the new accounts to work. The other 50% of the accounts were spread out among the three of us other collectors. Within the first month, I was collecting more than the veteran. How? I utilized my sales background.

• "You're one of my best customers, and I want to keep it that way. Also, we want to be able to give you a good rating if other companies call for credit references on you."
• "We assess 1.5% monthly--18% APR--late charge. However, if you're willing to pay right away--at 40 days--we'll waive the late charge."

• Follow the 80/20 rule, just like salespeople do. Focus your attention on the 20% of the largest accounts that owe you 80% of the money. Don't call alphabetically. You'll never get to the end of the alphabet.
• Call right away, and call often. Don't be afraid to get on the phone. Collections doesn't have to be confrontational.