A business is an entity that is called upon to sell products and directly collect revenues. However, some companies are faced with unpaid fractures. What are the strategies to follow for unpaid invoices by customers. Find the answer to this question in the rest of this article.
First step: the dunning letter
A company is a combination of factors and for the good functioning of these factors it is necessary to put elements in the points. However, some concerns are unfortunately faced by these business leaders and it is to remedy this that automated ar is recommended. Among these concerns are the unpaid invoices of the customers. Faced with this concern, the first reflex that a business manager must have is the dunning letter. You are probably wondering what a dunning letter is. Indeed, a dunning letter is a letter in which your company sends a letter to the customers in a kind and polite way to remind the customers that he has a debt towards his creditor. This letter can have an explanatory or informative form. It does not oblige the customer to pay at the time. However, the latter can make a commitment to pay on a date to be notified by himself. The dunning letter is the most recommended strategy because it is peaceful and helps the bad payer to become aware of the value of his debts. However, if after this step the client turns a deaf ear, a new strategy comes into play.
The formal notice
If you are a business owner and are forced to use the formal notice, it is because the situation between you and the bad payer has deteriorated. So the formal notice. If you don't know what a formal notice is, let me tell you that this strategy of following up on unpaid invoices is used to notify the person concerned that your company will take legal action. That is, the matter will be submitted to the legal authorities and the latter will have to undergo the sanctions that follow.