Cash Collection Example

It is called as cash collection to a method used by the executives of a company, to request the payment of withheld funds or late payments.

They focus on solving problems in past due or expiring accounts, before that asset is blocked or lost.

The executives look for the ideal strategies to collect or remind the debtor of the amount and circumstance of their debt. To do this, they use three basic processes.

• Call the debtor and remind him of the circumstance in which he is
• Send correspondence to your email and, where appropriate, to your physical address or postal box.
• Transfer the collection to a collection agency.

Even reaching the legal department and court, it must be handled with great prudence and respect for the debtor.

In the specific case of a debt, the responsible executive must manage the resources mentioned above, in order to achieve a satisfactory response as far as possible.

Example of effective collections:

The company “TractoresWoody S.A de C.V” needs to collect from its delinquent debtors.

Because they left signed documents, it is necessary to make collections and reminders to settle their debts incurred for the purchase of agricultural machinery.

For this, the company "TractoresWoody S.A de C.V" assigned an executive to make the corresponding collections in order to settle their debts.

This executive drew up a simple plan in order for them to make the corresponding payment:

1.- They will make a brief call to their homes to remind them that they have a payment commitment with the company "TractoresWoody S.A de C.V".

In this a call is made to find out the circumstance and if you have had problems with the product, which could cause the cancellation of the corresponding payment

2.- In the event that there is no favorable response, they will send a first reminder letter or letter collection notifying the expiration of a term or a payment and thus be aware of the commitment contracted.

3.- After a week of having communicated the expiration of any document, be it promissory note, bill of exchange or contract the first collection call will be made, which must contain the precise information and the means of payment corresponding.

4.- If there is no reply, it is convenient to send a second letter collecting the expired or expired document.

5.- It is convenient in case of refusal to make a repetitive collection call, indicating the corresponding payment method and if a discount is decided as an incentive.

6.- It is recommended to send a letter with the information made in the previous call, confirming the discount or payment facility that has been assigned.

7.- In the event that there is a repeated refusal by the debtor, the collection will be transferred to the section Legal so that the collection is made by the means ideally considered by the collection agency hired.