Collection level 2

The collection level 2 comes after several unsuccessful dunning actions despite the possible resolution of simple problems made during the collection level 1.

At this stage (between 8 and 30 days late), the situation becomes alarming. No minor reason (check lost, accountant out of office ... etc) can justify this delay.

Your client does not pay due invoices either because he doesn’t want to pay or because he can not due to cash issues or administrative issues.

If the delay is entirely under customer's responsibility (absence of dispute justifying the non payment), it is necessary to chase him up more firmly than before by varying the modes of recovery (e-mail, interactive e-mail, phone, postmail).

You shall involve your business colleagues who can intervene with the client (sales manager, director ... etc) and send a new dunning letter with acknowledgment of receipt requiring immediate payment.

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

This stage intervenes after the pre-dunning action then the collection level 1, it is firmer than the previous ones and requires the intervention of other actors of the company. The buyer must understand that this situation of late payments is abnormal and that the seller clearly wishes an immediate regularization.

cash collection

  • Your Cash Collection Software for B2B

    My DSO Manager, the online cash collection software

    My DSO Manager offers powerful features to make quality reminders at the right time.

    Dunning actions are triggered depending on the recovery scenario of each customer and the situation of the account (overdue invoices ...).

    Recovery documents are dynamically generated through #Hashtag and are customizable for optimum efficiency. See the demo.

Keep history of all your reminders from the first recovery till the last one. Each call must be prepared and based on previous exchanges. This allows you to structure your call and to ensure the buyer is not involving the same reason to not pay every time.

The customer reminder must be done in funnel to bring your customer to pay you with no other alternative but to confess that he can not pay you if this is the case.
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.
Comment this page
Do not enter sensitive data
Comments are subject of editor's review before publication
Articles on the same topic
Tools to download Not yet registered?
Sign up now to enjoy the download and unlimited use of all tools of Credit tools.
Find Credit Management tools on social networks
Credit Management Tools on Facebook Credit Management Tools on X Credit Management Tools on Instagram