Cash collection is often associated with litigation or threatening letters from bailiffs or collection companies.

In fact, the pre-litigation part (sending letters of formal notice) and litigation (lawsuits) are a tiny minority.

Bulk of debt collection is done and settled during the friendly phase.

This process is primarily a business management tool, a way to improve its operating cycle and its need of working capital. When this reallity is taken into account, it has a positive impact on all stages of the sales process:

  • Customer risk management and anticipation:
  • Contractualization
  • Billing Management
  • Management of disputes of all types: quality, delivery problems, poor billing, customer service ...
If stimulus actions are done in advance compared to the due date of the invoice,  it helps to identify the causes of non-payment and to perform necessary corrections in the business organization to not renew the same error.
The debt recovery is a tool to improve the effectiveness and efficiency of its business.
It is also a way to increase credibility to his company with its customers and to ensure its sustainability with regular cash receipts.

From the need to frame the friendly collection stage ...

However, it is essential to frame the friendly phase. It has a beginning and an end. Its duration is maximum 60 to 90 days depending on recovery scenarios.

Another essential point, the progressivity of actions that don't have the same purpose when they are performed at the beginning or end of the process.

Otherwise, the creditor may be "roaming" indefinitely by his debtor who always has a good reason to delay payment. the establishment of recovery scenarios

This framework is done by implementation of recovery scenarios that offer progressive steps. There are several levels of recovery and a specific action to switch from one level to another (eg sending a registered letter with acknowledgment of receipt).

Each scenario is defined based on specificities of each type of customer to which it is applied. For example, it will be very different for customers identified as financially risky and for public clients or Saudi Arabia customers...

  • Your Cash Collection Software for B2B

    The collection scenarios in My DSO Manager

    You can create an unlimited number of recovery scenarios in My DSO Manager then assign them to the customers concerned.

    Each scenario includes actions that are configurable in the settings and that are customizable when they are completed (sending of an e-mail...).

    The aim is to benefit from the power of the tool to dynamically create recovery documents while allowing the collector to customize them according to the customer, which is a condition of their effectiveness. See more with online demo.
The collector keeps autonomy to adapt the reminders based on its knowledge of the situation and experience with the buyer.

However, he must comply with the established framework. It is now impossible to have a good debt (undisputed) 180 days old with a stagnating situation in the collection of the bill.
If you do not apply this kind of process, not only you will spend a lot more time to recover each invoice (the actions are spread in time) but you're not going to get paid properly, which will generate cash flow problems.


The establishment of recovery scenarios is essential to effectively manage the friendly phase of cash collection that represents the most of your recovery job.

Each scenario has two possible outputs for an invoice.
  • The first one is temporary. It is the identification of a justified dispute explaining the non payment. In this case, the collector continues to recover the bill but with an internal actor of his company (sales manager, technician guy ...) in order to resolve the dispute. When the dispute is cleared, the bill reinstates the recovery scenario.

  • The second is simply the payment of the invoice or to take a bad debt in the event of default and legal action.
These principles reinforce the effectiveness of the recovery and the business relationship with your customers and allow to set at a high degree the level of requirements to all internal processes (quality, logistics, administrative ...) so that each invoice is cannot be disputed by the client and paid on time.
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