So far we have discussed methods of payment which granted 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:
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 Central bank’s restricted account database or approving a credit card payment transaction.
NEXT: Collection of delinquent debts – overview of the collection process