Collection & Recovery is the process of collecting payments from customers who have not paid their invoices on time. This process involves identifying delinquent accounts, contacting customers to arrange payment, and taking legal action if necessary. Collection & Recovery is an important part of the accounts receivable process and is necessary to ensure that businesses are able to collect the money they are owed.
For example, a company may have an invoice that is due on the 15th of the month. If the customer does not pay the invoice by the due date, the company will begin the Collection & Recovery process. This process may involve sending a reminder email or letter to the customer, calling the customer to arrange payment, or taking legal action such as filing a lawsuit.
Why it Matters
Collection & Recovery is an important part of the accounts receivable process and is necessary to ensure that businesses are able to collect the money they are owed. Without a proper Collection & Recovery process, businesses may find themselves unable to collect payments from customers and may suffer financial losses as a result. Additionally, a well-managed Collection & Recovery process can help businesses maintain good relationships with their customers, as customers may be more likely to pay their invoices on time if they know that the company is serious about collecting payments.