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.
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.
The different kind of payersIt is advantageous to adapt its recovery to the debtor by assigning a profile of payer. We distinguish seven main categories of payers:
Well invoice to be well paid
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