Education and Resources

 

COLLECTION PROCEDURE GUIDELINES

Assuming your clients are on net-30 terms, the following is a very broad approach to managing your Account Receivables:

  • 30 days - Send your customer a reminder notice.
  • 45 days - Make a phone call and find out why the invoice is still outstanding. Uncover and eliminate any potential disputes.
  • 60 days - Send a collection demand and follow up with a phone call. Place customer on credit hold.
  • 75 days - Make a phone call to determine if your customer has any intention of paying the balance due.
  • 90 days - Make a final phone call and send a final ten day demand letter. Call Manning, Price & Stern (800-575-9701) to find out if this client is currently placed for collections. Why not, it’s free!
  • Day 100 - Place customer for collection with Manning, Price & Stern and we will take immediate action. Remember, chances are if they owe you money, the customer owes several other vendors as well. Make yourself a priority and be the first one in line to get paid.

    Contact     Manning, Price & Stern today!

IMPORTANT QUESTIONS
To better serve you effectively and expeditiously, after all “time is money”, please review the imperative questions below. This will equip our Advisors with your current status which will allow them to proceed accordingly.

  1. Do you have all completed documentation in accordance with state and/or federal laws?

  2. Who has the authority to sign your contractual agreements? An employee or an Officer of the company?

  3. Is your debtor a sole-proprietor?

  4. Is your company publicly traded? If so, are you in compliance with the Sarbanes-Oxley Act?

  5. Is your customer in a community property state?

Asking these questions is an attempt to educate you with the eventual intention of strengthening your internal credit policies and procedures. By being proactive, you will have a better understanding of your customers’ creditworthiness.