Are you fed up with running after your receivables? Due to the increased subscriptions cancellation rate from customers, businesses highly suffer from revenue loss. The most practical approach you can imply is Invoice dunning to protect your business from such negative consequences. With this course of action, you can efficiently manage your invoice. Explore the online dunning procedure right here in-depth for your greater help.
An introduction to the dunning process
Many times customers are seen reluctant to pay the bill even after receiving the full services. This doesn’t seem very pleasant for companies as they have to consider operating costs for running their businesses. These invoices matter a lot from small to mid-sized companies as they heavily depend on customers’ payments to prevent cash flow bottlenecks. Here comes the efficacy of dunning! This process involves cross-examining the customers who are obliged to pay their debts to the company.
Both businesses and customers find dunning an unhealthy affair. It somewhat acts like intruding on customers while businesses continuously struggle to gather over dues from unwilling customers. However, it acts as a powerful solution for bill reminder and invoice collection to get back the lost earnings of the companies.
Major functions of the dunning process
Often, transactions get failed due to various reasons like thieved cards, date expiration of cards, or inadequate funds in client’s accounts. With the incorporation of automated dunning services, you can proceed many actions once you receive an unsuccessful card payment. This includes:
- Attempt again in case you come across failed business transactions
- Send customers email notifying the transaction issues
- Take authorization from providers for accumulating the latest information on cards
- Alert clients by forwarding reminder by mail about money owing from the declined credit card transactions
How online dunning process works?
If you are stressed about receivables management, simply take free external online services. The best part of using these services is that you don’t have to commit anything to recover your money. The receivable management company will remind your customers and you to transfer the outstanding payments to your business account. You need to upload the open invoice free of cost and wait for collecting outstanding debts. Once the customer transfers the outstanding invoice to your account, you can stop the reminder procedure from maintaining a good relationship with your customers.
Advantages of outsourcing the dunning process
On handing over your Invoice dunning process to a third party, you can get benefitted from the following ways.
- Save a lot of your time for doing other important tasks
- There’s no chance of weighing down of business relationship with your customers
- Fully control the process by stopping the reminders at your convenience
- Get your overdue back at your account without spending a single penny
- The money that you claim from your customers remain with you only
As invoice reminders that are sent are appeared as urgent, the customers get alert and make sure to repay the money on an urgent basis. The external providers don’t share an emotional bonding with your customers. Thus the payment reminder sounds official to them. You can expect from the providers’ steps claims like forming the reminder, sending them to customers, keeping eyes on the Invoice deadline, and maintaining documentation of all the activities under the dunning process. The process is so transparent that you get all the evidence by email, including the reminder set to your customers. As you have the power to control everything, you can cease issuing reminders after the first reminder free of charge.
Does the online dunning process abide by the law?
Yes, absolutely. You don’t have to worry about facing any legal dispute on sending payment reminders to your customers. The main motto of availing the process is convincing your customers to pay you quickly. Once you upload open invoices collection, your customer will receive a genial write reminder. Chances are there that your defaulting client forgot to give payment or didn’t get the invoice.
Thus they are given a deadline to pay immediately. If you still have not received the money, the final reminder will be sent with a final deadline. On crossing the final deadline, you can start the collection procedure with the help of a debt collection organization to reach out to an extrajudicial settlement. Instead of running after invoices, opt for automated payment collection providers to cut down the risks and costs to a great extent. You can also visit our website to get more information on this.
