Logo Credit Management tools
Tools, methods, training and services
To know how to get paid by your clients

Collection level 1

Despite a first contact with your client, he has not honored its promise to pay your bills which remain unpaid while they are overdue. The first step is to understand what is the reason for nonpayment and to dissociate the minor reasons:

  • Check sent but lost by post mail or arrived unsigned,
  • Client forgot to make the payment,
  • Accountant or director absent,
  • Bank transfer made with wrong bank details,
  • Payment made by mistake to another supplier ... etc.
Invoices collection and recovery
which will be resolved quickly and more serious reasons that are due to a dispute on an invoice, financial fragility of your client and / or his unwillingness to pay you.

If a collection action made by phone is essential at this stage, a letter with acknowledgment of receipt is promptly sent in order to request an immediate payment.
The objective of this new recovery action is to get a new promise to pay or a promise to pay in writing if the settlement is made in a few days.

Collection level 1

invoices recovery
The effectiveness of your recovery process depends on a judicious combination of phone calls and dunning letters which at least one is sent with acknowledgment of receipt.
Objection often heard from the sales manager: "do not send dunning letters" or "do not call the client about overdue invoices because it will hurt our business relationship."

This is not true!

Request clients to respect their commitments does not affect the business relationship.
On the contrary, excessive tolerance in bill collection quickly brings to an intolerable situation (increasing overdues which affect the cash flow of your business) which finally will impact negatively the relationship with your customer.
My DSO Manager
Your Debt Collection Software available for all sizes of companies

Collect invoices with administrations and large companies

Key factor in the success of your recovery actions, finding the right person in the company is not always so easy. Indeed, if the accounting manager or the chief financial officer are easily identifiable as interlocutors targets in small and medium companies, this search can become more complex with larger-sized companies.

A major problem of debt recovery with large companies and administrations is to understand their organization and find someone who can unlock the payment. It is therefore necessary to investigate in order to understand the validation process of invoices and act where the blockage is, otherwise reminders will have no effect.
This principle is even more true as large companies and administrations are streamlining their accounting services with more automated tasks. This works as long as there is no problem. However, dispute and exceptions management is often poor, which implies specific recovery actions by the seller.

Next: collection level 2

Comment this page

Your name
Your email (no published)
Your comment
What is the result of 10 multiplied by 4

Articles on the same topic

Bad debts collection
How to deal with an outstanding customer? Lawsuits, collection agencies, credit insurance can recover all or part of bills

Collection prior due date
How to chase up efficiently customers before the due date of invoices to improve collection

Collection level 2
Collection of invoices after 30 days past due. Reminder letters template to be paid now

Collection level 3
How to collect very overdue invoices (up to 50 days past due) with formal notice templates in english and many other languages

Collection agencies
All you need to know about collection agencies. Advantages and disavantages to use a collection agency to recover due invoices

Debt collection softwares
What are the advantages of debts collection software in credit and accounts receivable management? Presentation of main features of these tools dedicated to credit teams.

Debt collection in My DSO Manager
What are the main features of MY DSO MANAGER for debt recovery?

Not yet registered? The subscription allows downloading and unlimited use of all files of Credit Management tools.
Social networks
Find Credit Management tools on your favorite social networks
All news about collection and credit management
Words of experts
Find the latest articles of collections and credit management specialists
User reviews

This Credit Management Tools is very useful in my present job as a Credit & Collection Manager.