The dunning process, where a customer is notified when they become overdue in paying an invoice, can be an effective method in minimising debt. The Collect Letters usually follow a progression from a polite reminder to a firm Final Demand and are governed by varying laws in each country.
Our experienced Collections team apply the most effective letters for each jurisdiction, providing you with a quick and cost-effective method of obtaining payment from your debtors.
Our customers tell us that our Collection Letters and Final Demand For Payment Letters are particularly useful for smaller debts that are difficult to chase due to the high numbers but low values. These debts can take up a significant amount of your time to collect, tying up large amounts of your resource. Collect Letters provide a simple and effective option for escalation with minimal cost.
One example of how Final Demand Letters can be used to great effect included a customer who wanted to clean up an outstanding ledger. The company had grown significantly and internal resource could not be allocated to chasing unpaid debts; these were scheduled to be written off. We worked closely with the company’s credit controller, sending Collect Letters on their behalf.
Following the letters, 55% of the ledger was recovered. The company continues to use the Collect Letters as a part of their dunning process and, four years on, their bad debt has reduced from 54% to 0.4% with a business growth of 124%.
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Using our accounts receivable services enables you to focus on your core business activities and maintain your confidence in your credit process. We recognise that each company's needs are unique and understand that “One Size Does Not Fit All”.
Therefore, we work with you to develop solutions specifically tailored to your requirements while balancing customer retention, cash flow, and dispute resolution.