Collection prior due date
- To obtain a promise of payment for the due date of the invoice by a given mean of payment. If payment is not made at the promised date you can remind your client about his commitment and require an immediate payment.
- To check that your client has your correct bank details and address in case he will send a check or a promissory note.
- To ensure that the invoices are validated by the customer or to identify any dispute opposing the payment. This gives the time to solve the problem identified (error on the invoice, missing material, quality issue ...) and finally be paid on the due date which would not have been the case if you had chased up your customer ten days after this date.
- To educate your client on the seriousness of your management of your receivable. When a customer tries to gain cash by delaying payments to its suppliers, it will systematically do so with the most lax of them and will pay those who make regular reminders.
Collection prior due date processThis action is very commercial and customer satisfaction oriented. It basically contains questions to ensure that everything is in place for the payment of the invoices.
Another advantage, it allows to detect upstream cash issues if any and react quickly to a credit risk identified.
Perform the first collection action between 7 and 15 days before due date of your invoices by phone or e-mail.
Get a proof of payment from your customer like a payment advise from the bank indicating the amount that will be paid and at which date.
Or get a promise to pay confirmation by email. It confirms the commitment of your client to pay you and constitutes acknowledgment of debt in the event of default payment and further legal action.
Next: collection level 1
Examples of each type of question.
Structure of a telephone conversation with formulations examples.