from customers who pay in a one-time payment before or at the time of delivery
So far we have discussed methods of payment which require the granting of credit to the organisation’s customer. In many cases, businesses do not grant credit to their customers and require full payment before delivering the product or when receiving it.
Here are three alternatives:
Diagram 25: The classification of customers with a one-time payment before and during delivery according to the type of payment method
There is no prevention activity here, with the exception of controls that are required at the stage of receiving payments, such as verifying the actual transfer of funds or checking the check against the restricted account database or approving a credit card payment transaction.
Next: Collection of delinquent debts – overview of the collection process