Cash collection
It has been suggested that this article be merged into Debt collection. (Discuss) Proposed since January 2024. |
Cash collection is the process of collecting cash payment to fulfill the debts of customers' overdue invoices. Debts currently being processed for cash collection are said to be in collections.[1]
Invoices are always issued with terms of payment.[2] These terms vary widely from 'Cash terms', meaning that the invoice is due immediately[citation needed], to many forms of 'Credit terms' (for example 30 days from date of invoice[3]).
Unpaid invoices are considered outstanding, and those which remain unpaid for periods longer than their 'terms' indicate are considered overdue. It is the aim of the Cash collection function of a business to collect Monies for all outstanding invoices before they become overdue and to mediate payment arrangements to ensure that invoiced debts do not become doubtful or bad.
See also[edit]
References[edit]
- ^ Yale, Aly (2022-09-22). "What happens if your debt is sent to collections? - CBS News". www.cbsnews.com. Retrieved 2024-01-13.
- ^ "Invoicing and taking payment from customers".
- ^ "Getting your terms and conditions right | Business Link". Archived from the original on 2011-06-10. Retrieved 2010-04-11.