sample accounts receivable collection policy

The client will continue to receive letters, phone calls, texts, and emails, but they are worded as requests to pay as opposed to reminders.Īfter 90 days without payment: the account is given to a third-party collection agency or sent to small claims court. Many service businesses have a 90-day accounts receivable process that is structured like this:Īfter 30 days of non-payment: the client will start to receive phone calls, emails, or overdue payment reminder letters.Īfter 60 days without payment: the account is officially moved to in-house collections.

You can also structure your collections process by time. Save that for when they’re unresponsive and still haven’t made any attempts to pay after 90 days. Starting small is a good way to keep the situation from escalating too quickly and getting out of hand.įor example, you probably don’t need to threaten a client who’s 1-2 days past due with small claims court. Involve a collection agency or professional debt collector.Move the account to internal collections.Send a simple payment reminder via email or text.Here are the steps many service businesses follow when pursuing a debt: Most outstanding invoices can be handled internally as long as you create a legal and straightforward process to follow. How do I collect overdue accounts receivable?

Sample accounts receivable collection policy