If only everyone could pay on time … but this is the real world.
Some customers are serious and pay on time.
Some people forget to pay because of management confusion.
Some have no money to pay, which may be:
There is no budget to pay your bill, or
The client didn't pay me.
Therefore, you need to start action and start the accounts receivable recovery process.
How to recover accounts receivable
Sometimes, if customers are not satisfied with the products or services they receive, they may object to the invoice and refuse to pay. Bill errors and pricing problems, such as failure to implement promotions and discounts, are also common causes of disputes. When this happens, other departments, such as sales and customer service, may intervene to evaluate the problem and determine the best solution. In most cases, similar problems will not be solved until the due date of receivables.
However, if the dispute cannot be resolved, the collection procedure should be started. The general process is as follows:
Before taking any action, first confirm that the customer has received the invoice.
Next, contact the customer by phone or email to remind them that the payment is overdue. Ask them to pay immediately, otherwise they will face the risk of late payment or interest.
If the customer does not reply within 24-72 hours, the staff can follow up by phone.
At the same time, send a reminder confirmation letter to the customer to confirm the details and amount, and explain the subsequent risks.
Depending on the grace period of the company, this process may be repeated several times. The average collection period of accounts receivable is 30 days, and overdue for more than 90 days is regarded as serious arrears. When it is overdue for more than 120 days or it is considered irrecoverable, the account can be sent to Lian Xin Group for processing.