Collection level 2
At this stage (more than 3 weeks late payment), the situation becomes alarming. No minor reason (check lost, accountant out of office ... etc) can justify this delay.
This dunning letter will be quickly followed by a phone call stronger than previous. He must understand that your recovery actions are professional and that he will be revived at short intervals until he honors its commitment to pay your bills.
Require from your customer to pay late payment penalties to offset the cost of overdues. The payment penalties in case of late payment is mandatory in several countries (EU for example). In addition, requesting late payment penalties will help to educate your customer to pay you on time.
Collection level 2
The intervention of the sales representative is often very effective at this stage for the simple reason that he does not have the same contacts as the person responsible for bill collection, who is in connection with accounting services. He will use his personal relationship with the purchasing manager or director of the company to achieve a quick release of payment of bills due.
Use the blocking of the account as a recovery tool: "we will be able to deliver your last order upon receipt of your payment". This will be enough to convince many clients to pay you. If your client is unable to pay your invoices, blocking deliveries will limit the potential unpaid amount.
Next: collection level 3
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