Collection Procedure 1 - Word

Collection is the process of collecting moneys from customers in accordance with the terms as stated on the invoice. A good collection procedure is as essential as the actual sale for the profitability of the company. Slow paying customers create significant cash flow problems as well as costing the company time and money to make the collection and, when applicable, interest expense on borrowed working capital. Regardless of the potential profit of a sale, if the company fails to collect, we all lose!