Non-Payment: Actions

Your customer has failed to pay - now what?

 
You have done everything to manage your accounts receivable portfolio properly. Still it happens: your customer has failed to pay on time. In such a case, follow a consistent demand process.
 

1. Stay one step ahead of late payers

Keep a good overview of outstanding receivables. When you see the due date approaching, call the debtor shortly before the due date. One such phone call can make a big difference.
 

2. Respond immediately if the due date passes

We advise you to notify the debtor you have not received payment at the latest within 15 days after the agreed due date.
 
You can naturally call the customer (again) to find out what the problem is. Remember that the customer may give some excuses. React calmly and continue to seek possibilities for making good agreements. Make notes from the conversation in your customer or CRM system.
 

3. Agree on a payment arrangement

If you agree on an individual payment arrangement with a debtor, confirm it in writing. Also note what the sanctions are if the company fails to adhere to the agreements and always have the counterparty sign as evidence of agreement.
 
Do you have a credit insurance policy with us? If you permit postponement of payment within the original overdue term (this is listed in your policy and is usually 60 days), you do not need to notify Atradius. Any other payment arrangements must be reported to us.
 

4. Give your customer written notice of default

If payment still does not take place and no arrangement is possible, you can again send written notification to the debtor requesting payment at around 30 days after the due date.
 
At the most 45 days after the due date, we advise you to give the debtor written notice of default. In this notice, indicate the final date by which the amount must be paid. Explain clearly in the letter that you will hand the matter over to a collection agency if the payment is not made and that all collection costs will be at the customer's expense.
 

5. Hand over collection

A collection procedure is a matter for specialists. If your debtor has still not paid 60 days after the due date, it is therefore wise to hand the case over to professionals. You may wait until 90 days after the due date if you wish.
 
Once you have handed over the collection case, break off contact with the customer. If he contacts you himself, refer him to the collection agency.
 

For whom?

Atradius Collections offers integrated collection processes for parties with credit insurance. But you can also turn to Atradius for collection services even if you do not have insurance with us.
 

 Would you :

• Like to know more about how we can help you in the event of non-payment ? Get in contact with us.
• Like to know what Atradius Collections can offer your company ? Get a quote.
• Like to see what a difference we can make for you ? Calculate your advantage.