Collect your invoices

Get paid by customers at the due date of invoices is vital for any business. This is the main objective of Credit Management department.

The use of a collection scenario (also called collection process or workflow) adapted to each situation provides the best results and allow to improve your company's cash and profitability.

As the objective it to get paid for the due date of the invoice, the first dunning action takes place before the due date to ensure that nothing shall prevent the payment of the invoice and to get a promise to pay.

This action allows to identify early a potential dispute (administrative, quality issue ...) in order to resolve it as quick as possible.

If payment is not made at the promise date, collection actions are getting stronger as the time passes in order to push your client into a corner and maximize your chances to be paid.

In the opposite case and if you don't manage to get paid, these reminders will be a proof of your good faith during a legal procedure against your customer.

Collection process

Be courteous and factual in all case with your late customers while becoming stronger as the delay of payment increases.

Keep a written history of all your reminders. This will allow you to be more relevant on the dunning sequence and to remind your customer of his previous commitments. Moreover, you will have to provide proof of your reminders in case of legal action opened against your customer for unpaid invoices.

The phone is the most effective communication mode to chase up your customers. However, each agreement / commitment must be confirmed in writing (email, fax, letter) in order to ensure that the buyer is on the same level of information. If he doesn't respect his commitment, dunning letters with acknowledge of receipt has to be sent to put pressure on him and to formalize the collection action.

My DSO Manager, the online cash collection software

My DSO Manager is a revolution about the implementation and the use of a debt collection software.

Innovative and intuitive features (interactive emails, automatic reminders, cash forecasts...) provide with unprecedented opportunities to improve debt collection. The pricing allows all sizes of companies to use the software.

The data import modules, Smart Upload, FTP secure and connectors (Quickbooks, Salesforce...) allow to start using the software very quickly.

Our multi-entity platform allows to manage multiple legal entities of the same group. The flexibility of the software and customization options allow to meet all needs. See more with the online demo.

The different kind of payers

It is advantageous to adapt its recovery to the debtor by assigning a profile of payer. We distinguish seven main categories of payers:

The negligent payer, still waiting to be chased up to pay.
A quick reminder (ideally before due date), commercial oriented, has to be done.

The bad payer, trying to win few weeks (or months) of cash by delaying the payment of bills.
Chase him up firmly at short intervals to make him understand the seriousness of your management. Quickly send a formal notice as simple stimulus will have no other effect than to convince him that he still has time before paying.

The insolvent payer, can not pay you for the time because its financial difficulties.
Be demanding in your recovery and even accept a schedule of payment (always with immediate partial payment). Suppliers least present in the collection will be the last to be paid!

The administrative payer, which includes many large public and private structures. Administrative complexity "drown" your collection. The letters sent arrive nowhere ... etc.
Make the effort to understand the internal invoices validation process. Tie relationships with key people who will help you in resolving nodes that are sure to delay the regulations of your bills.

The "dispute" payer, which invokes a systematic dispute valid or not to avoid paying your invoices. Be accurate in your recovery by providing timely evidence of the due date of your bills. Then proceed without delay to the higher speed (letters with acknowledgment of receipt) to make him understand that you are not fooled.

The automatic payer, with whom you accept a payment method type automatic direct debit.
No recovery is needed.

The good payer, the payment will automatically arrives the day of the due date of your bills, or even before.
In this case the recovery is unnecessary.

Well invoice to be well paid

Tools download:

Invoicing rules

Invoice template

The aging balance

Aging balance

Collection prior due date

Collection letter prior due date

Collection: ask the right questions

How to do the collection action prior due date

Collection letter prior due date

Collection level 1

Collection Kit

How to collect invoices by phone at level 1?

Reminder letter level 1

Reminder letter level 1 block account type

Reminder letter level 1 delay penalties type

Reminder letter level 1 financial closing

Reminder letter lever 1 good payer type

Reminder letter lever 1 partnership type

Reminder letter level 1 classical type

Reminder letter level 1 block account type

Reminder letter level 1 classical type

Reminder letter level 1 good payer type

Reminder letter level 1 partnership type

Reminder letter level 1 classical type

Collection level 2

How to collect invoices by phone at level 2?

Reminder letter level 2 block account type

Reminder letter level 2 partnership type

Reminder letter level 2 block account type

Reminder letter level 2 partnership type

Reminder letter level 2 to the project manager

Collection level 3

Formal notice level 3 additional fees type

Formal notice level 3 classical type

Formal notice level 3 collection agency type

Formal notice level 3 credit insurance type

Formal notice level 3 personal type

How to collect invoices by phone at level 3?

Formal notice level 3 classical type

Formal notice level 3 collection agency type

Formal notice level 3 credit insurance type

Formal notice level 3 classical type

Formal notice level 3 collection agency type

Negociate a payment plan

Agreement to compromise debt

Contract letter of payment plan confirmation

Late payment penalties

Late payment penalties calculation

Late payment penalties Kit

Reminder letter delay penalties type

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 level 1
How to collect efficiently invoices when they are past due

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

The keys of cash collection

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.

Invoices dispute management
How to manage well disputes in credit management? Disputes are a main reason of overdue invoices

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

Debt collection media

Improve your processes with cash collection
How to use debt collection to improve the quality of your business? Are the issues related to credit management broader than the optimization of the WCR? "

SME organizations for debt collection

Time and collection management
What is the link between effectiveness of debt collection and the timeline of actions taken? Is time management a key factor of success for the collector?

tools to download

Invoice template