The typical debt management process
The debt management and collection process slightly differs from business to business but follows a standard outline. The overview shows the standard steps taken at Atradius Collections.
Step-by-Step case handling by Atradius Collections
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Day -14 |
This is the moment that a lead enters. You look into whether you can actually do business with the prospect. In general, it is advisable to request a credit recommendation before the first order is placed. |
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Day - 7 |
The prospect places an order and consequently becomes a customer. Internal processes for delivering products or services are put in motion. |
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Day 1 |
The order is delivered and the invoice sent. The invoice is sent on day 1. This is the start of the payment term. We advise you to actually send the invoice on day 1. |
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Day 15 |
If you phone the debtor before the due date to ask whether the invoice has been received and approved, you prevent additional delay. With a due date of 30 days after invoice, this could take place on day 15. |
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Day 30 - 32 |
On the due date, check whether payment has been made. Just after the due date, send a reminder letter to the debtor. Indicate in this letter that the payment has not yet been received and that you would like to know when you can expect it. In the case of a payment term of 30 days, a reminder can be sent on day 32. |
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Day 45 |
If your reminder has not resulted in payment, make a phone call to remind the customer. This puts more pressure on the debtor. |
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Day 52 |
If payment is still not made even after the telephone reminder, you can send a (final) demand for payment. In this notice you inform the customer that the outstanding receivable is being handed over to Atradius Collections. |
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Day 60 |
Debt is transferred from the customer to Atradius Collections for the amicable collection process. |
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Day 90 |
Transfer of amicable collection process to legal collection process at Atradius Collections. In consultation with you, Atradius Collections will decide whether it is necessary to begin legal proceedings. |
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