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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.
cash collection process

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

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

    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
The aging balance
Collection prior due date
Collection level 1
Collection level 2
Collection level 3
Negociate a payment plan
Late payment penalties

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