This section focuses on the two main collection processes:
- Collection form customers that are paying on time, in accordance with their agreed payment terms.
- Collection from customers that did not pay in time as agreed – collection of arrears.
To complete these two processes, we use different types of collection strategies:
- Preventive collections –to be able to collect receivables in-time, we will perform a series of proactive actions aimed at resolving open issues and leading the customer to repay in time and prevent arrears.
- Active collections of arrears – performed by the collections department through several sub-processes and techniques.
- Pre-legal collections – to prevent arrears to reach the legal phase.
In this section, we will describe in details each stage of the collection process, in accordance with the bill-to-cash cycle diagram below.
Next: On time collections