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Debt Collection

Manages defaulting clients more easily and intuitively through a structured collection process.

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Workflow Steps

Step 1 - Identify Delinquent Account

The system automatically flags invoices that are past their due date by a specified number of days (e.g., 30 days) and moves the account into the "Collections" state.

Step 2 - Automated Reminder Series

An automated series of increasingly firm emails and/or SMS messages are sent to the client over a set period (e.g., days 30, 45, and 60).

Step 3 - Internal Collections Call

If the debt remains unpaid after 60 days, a task is created for an internal collections agent to personally call the client to arrange a payment plan.

Step 4 - Formal Demand Letter

If the debt is still outstanding at 90 days, a formal demand letter is automatically generated and sent via certified mail.

Step 5 - Escalate to Agency/Legal

After a final internal review at 120 days, the account is automatically packaged with all communication history and escalated to a third-party collection agency or the legal department.

The Purpose of Debt Collection

This workflow provides a systematic and escalating approach to managing and recovering overdue payments from customers. It automates the process, from gentle reminders to more formal collection activities, ensuring consistent follow-up, improving the chances of recovering debt, and reducing the manual workload on the finance team. It also provides a clear and complete record of all communications and actions taken for legal and reporting purposes.

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