Amicable collection in the professional sector

Summary:

1. What is amicable collection?
2. What are the procedures for amicable collection?
3. What are the advantages of amicable collection?

In the professional sector, it happens that invoices remain unpaid.

In this delicate situation, and in order to settle the
customer debt
best, it is advisable to start an amicable amicable collection procedure.

But what is it exactly? And why it should often be given priority in customer risk management.

This practice is a prerequisite to the legal process. It consists in entering into negotiation with the debtor to collect the debt.

What is amicable collection?

The amicable collection is a procedure that allows a business customer to amicably settle a debt it has with another company.

This procedure can lead to a solution that suits both parties:

• A special payment plan,
• A repayment agreement,

The amicable collection is generally preferable to more formal collection methods, such as legal action. They are therefore outside the judicial framework of the courts.

This allows the dispute to be resolved more quickly quickly and without generating additional costs.

It is important to note that the amicable collection does not always guarantee the repayment of a debt.

If, however, the parties are unable to reach an agreement on a reimbursement agreementit may be necessary to resort to collection collection methods methods.

What are the procedures for amicable collection?

A amicable procedure can be launched when a customer does not pay his invoice within the time limit.

But what does it actually consist of?

It can be materialized by different forms.

And, it is important to use the appropriate form depending on the customer relationship on the one hand and the amount of the customer debton the other hand.

A text message, a call, an e-mail, a letter, or a registered letter with acknowledgement of receipt are often the means used to set up an amicable procedure. It is quite possible to go to the company’s location to discuss.

The success of such a procedure is often based on customer follow-up and listening. The objective here is toreach an agreement. It is therefore necessary to start with a negotiation perspective.

Indeed, the advantages of amicable collection are numerous, in comparison with a judicial legal proceedings.

What are the advantages of amicable collection?

The first objective of amicable collection is to avoid a legal proceedings. Its advantages are numerous:

1. Prioritize commercial relationships. In this sense, the approach is to find a solution that suits both parties. It is advisable to look for a solution before applying penalties. Because the approach has a long-term impact.
2. Save a substantial amount of money. Indeed, it is much less expensive to find an amicable solution than to rush headlong into legal proceedings. Entrusting a claim to a lawyer or a bailiff implies paying high fees, on the one hand. And on the other hand, it can damage your business relationship.
3. Save time. The amicable solution is faster than the judicial solution. This allows you to solve your cash flow problems more quickly. Where a trial takes time.

With Aston AI, you automate the collection process with personalized with personalized reminders.

This collection software allows you to reach your customers via different channels: e-mail, telephone, registered letter.

Aston AI also allows you to prevent all forms of customer receivables by controlling reminders and evaluating the creditworthiness of your customers (scoring).