When considering a settlement on an account, several questions come to mind. Is the debtor still in business? How old is the account? Is there a dispute? Did the debtor present his dispute to the client prior to collection activity? What is the debtor’s financial situation? There are many other questions that may arise, but these are a good start in determining if a settlement is worth it for your client and worth presenting.

The settlement begins with the collector. Has the collector exhausted all other avenues of procuring payment in full? Is a settlement the best option? If the answer to both questions is a resounding yes, it’s time for the sales representative to talk to the client. While some clients provide settlement authority at a particular percentage, most do not. Gathering all pertinent information relating to the circumstances of the settlement offer is key. I always try to think a few steps ahead. What information will the client require to make an informed decision? What needs to be stressed to ensure the client understands this is the best deal they are going to get? “Is”…. this the best deal the client will get?

If I don’t believe wholeheartedly in an offer due to lack of information, I will hold off on presenting the offer to client. At times I will present an offer to my client, however, I will tell the client I feel the offer is lacking; then ask for a counter offer or confirmation they have declined the offer.

Putting the client’s interests first should always be top priority. Although going for the quick and easy settlement may produce some quick commission, we must set our sights on long-term partnerships by protecting our client’s interests first. Establishing a good, working relationship with our clients is always our goal. Only presenting settlement offers with great merit will go a long way in establishing your client’s trust.

Trish Entenman
Manager, Key Client Division