You are certainly familiar with FC or Field Collection in debt collection transactions. Field collection is a person whose job is to collect debts from borrowers roughly. Yes, FC has an important part in reminding and managing debtors to pay off their debts.
These FCs have several sets of work related to the billing. These FCs also have to encounter various obstacles during the billing process. So the billing sometimes does not produce results. Then, what exactly is a field collection? Here’s the explanation!
What is a Field Collection?
The term field collection is familiarly referred to as FC. Well, field collection is in charge of visiting debtors who still have outstanding debts or who have paid within a predetermined deadline.
As an FC, this work is an important part for debtors to settle their debts. The field collectors will also take various ways to make these debtors pay off their arrears by explaining the consequences that will arise later.
These field collectors not only remind debtors or customers to settle their debts but also provide proof of official payments to customers following company regulations.
This company also usually gives targets to field collectors that must be met every month so that debtors or customers who are in debt immediately make payments through field collectors.
However, in reality, these debtors usually do not automatically settle their debts to field collectors in the field. So sometimes, these collectors have to come to these debtors every day.
Field Collection Task Is
Maybe some of you think that the work of the field collector is the same as that of the desk collector. Both of them remind customers or debtors to pay their arrears, but both have different tasks.
These desk collectors usually only move into the office to remind customers by calling them. In contrast to desk collectors, these field collectors must visit debtors in their homes to remind them of arrears payments.
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So, the task of the collection field is as follows:
Monitoring customers who are having problems with installments
The first stage carried out by field collectors is monitoring customers who are constrained in paying installments. In this case, the customer experiences problems with installments that are not on time in fulfilling the agreed payments at the beginning of the loan.
Sending warning letters to customers
These field collectors do not simply charge them to collect payments to customers because the relevant company procedures carry out each billing process.
In the next stage, field collectors usually send SP or written warning letters to customers in arrears of more than 20 days to validate conditions, analyze, and collect payments by customers that have not been completed.
Of course, the deadlines for each company are different. So the duties of the field collectors are carried out by the standard procedures that the company has given.
Negotiate payment options
The next task for the field collection is to negotiate with customers who are experiencing installment problems regarding payment options that customers can make.
In this case, the customer and the field collector will agree on the deadline for the installment payment to be paid so that the customer must keep the promise made with the field collector.
Monitoring customer appointments
After the customer agrees to payment of arrears to the pre-field collector, the next task of the FC is to monitor the promise of the customer concerned.
If the allotted time has come, the field collection task will come to the customer and collect his promise to pay the arrears.
Searching for hard-to-find customers
If at the promised time it turns out that the customer is not in the place or is difficult to find, then these field collectors must look for the customer in question until they are found.
Ensure all customer data is correct
In searching for customers who are difficult to find, the field collectors will also re-check that all data about the customer is correct, such as residential addresses, telephone numbers, and other personal data.
Report and discuss with superior
The next task for field collection is to report the results of visits or handling to customers experiencing problems with their superiors. Furthermore, further discussions will be held to follow up on this matter.
Create billing records
Another task that is no less important to be carried out by field collection is to keep records of every activity carried out during the billing process for arrears customers. Usually, these FCs will write their records through a collection system owned by the company.
Coordinate customer handling
Furthermore, the collection field will also coordinate with the internal collection party or with related divisions in the company in handling customers who have such arrears.
Those are the tasks performed by FCs in carrying out their work. Of course, each field collector has a different period in dealing with customers who have arrears in installments, ranging from 30 to 90 days.
Of course, every task carried out by these FCs follows the standard procedures given by the company so that this field collector does not carry out his duties arbitrarily. That way, billing will run effectively without any violence.
Obstacles Often Faced by Field Collection
Field collection is not an easy job to do. As a field collector, of course there are obstacles that must be faced in carrying out their duties. They can face various obstacles, such as the following:
- Customers cannot pay due to financial constraints
- This item has not been sold
- Customers accidentally disappear when billing
- The installments have already been paid to other distributors, and so on
The four obstacles above are a small part of the obstacles commonly faced by field collectors in collecting arrears in installments to customers. Of course, not all customers have arrears and have difficulty paying; these obstacles often occur to some customers or debtors.
On the other hand, these field collectors are obliged to collect arrears in installments to customers. However, on the other hand, these FCs cannot impose if the customer’s position has not made a payment. If this problem continues, the worst thing will be uncollectible receivables.
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Then, what will happen if these obstacles occur frequently? Of course, this obstacle can cause the company’s cash flow to become stuck. In this case, the company will find it difficult to restock the goods it should sell to its customers.
Field collection is one of the jobs that have a heavy task in execution. These field collectors must make various efforts to remind customers or debtors who have arrears in installments to the company.
While dealing with customers, of course, there are many obstacles faced by these field collectors. Although there are customers who always pay their installments on time, customers still have problems paying their installments until they are in arrears.
For this reason, companies need to make various efforts to minimize the existence of receivables that customers do not pay.
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