Collections process is a set of procedures and protocols used by a company to recover unpaid debts from customers or clients. The collections process typically involves a series of escalating steps to communicate with the customer and demand payment, such as sending reminder notices, making phone calls, and working with debt collection agencies or legal counsel. Effective management of a collections process requires clear communication and transparency with customers, as well as a commitment to compliance with debt collection regulations and standards. Properly managing collections can help to reduce outstanding debts, increase cash flow, and support the financial health of the business.
