Best Technique for Negotiating a Payment Plan on Clinic Accounts

One of the best strategies to set up a payment plan on clinic accounts is to offer to write off additional interest on accounts once a payment plan is set up.

#1: This gives them an incentive to to set up the payment plan right away, because the more you have to call them back, the more interest that will accrue.

#2: This gives them an incentive to keep making their payments, because if they stop making payments, no interest will get written off and they will owe the full amount again including ALL of the interest.

How it works is..

• You offer to set up the payment plan for the current balance and inform them you will write off all interest that accrues after the payment plan is set up.
• If they want to you call back, you let them know you will set up the payment plan for the current balance of the day they are wanting you to call back (that is the day they actually set up the plan).
  (Do not offer to set up for that days balance at a future date or they have no incentive to sep up the plan sooner rather than later, the whole idea is you let the opportunity to save money create the pressure to set it up now/soon.)
• Inform them the accounts will continue to accrue interest, however the payment plan is set up for that days balance, as long as they stick to the payment plan all interest that accrues after that day will be written off.
   
• You should also offer to add any NEW account that are listed with us to their payment plan, that way they will not have to pay any interest on those accounts. (This keeps you from having to call them back!)
  (You will need to note they agreed to that in a way you can easily find in the future, good notes are extremely important and should include the balance on the day you set up the payment plan as well as the other payment details.)
  (When new accounts arrive you take the current amount owed on the payment plan {not the balance} + the amount of the new listings and create a new payment plan from the total based on your previous agreement.)
  
  Let me know if you have any questions.  ~ Mark
  
  
  Additional info on interest below
  Interest is 5% a year, payments are always applied to the principle amount first.
  Once the principle amount is paid, payments then are applied to the interest amount.
  You can use the interest amount in your negotiations, you cannot change the rate or stop interest from accruing on an account. They happen automatically.

Note: The additional interest that accrues does not get written off until the account is PIF.
You can also offer to write off all or part of the interest in return for payment in full (PIF).
 

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