Debt Collection
If an expired invoice is not paid despite reminders we enter into the realm of debt collection. The exact flow of debt collection differ between countries. For this reason, a single guide cannot cover the flow in all cases, so national guides will be generated for the collection flow. In this section we look at the shared functionality, which always starts with the creation of a Collection Errand.
Collection Errand​
- Expired invoices for a debtor can be grouped into a Collection Errand.
- Collection errands centralises: status tracking, outstanding balances, reminder handling, and payment handling.
- Collection errands can be integrated with a bailiff, that is a debt collections agency or service provider.
- An errand will only contain invoices for one product. This is because: for invoice service the client is the errand owner, and for factoring the partner is the errand owner.
Debt Specification​
A debt specification can be distributed to the debtor informing them of the debt and how to make a payment.
Payment Handling​
Any payment on the collection errand or an invoice in the collection errand is routed to follow the collection bath settlement order. This is the precedence for what gets paid of first.
The default collection bath settlement order.
- Collection Balance Fees
- The interest on the Collection Balance
- Invoice Reminder Fees (in order starting with the oldest invoice)
- Interest on Invoices (in order starting with the oldest invoice)
- Outstanding balance capital on Invoice (in order starting with the oldest invoice)