Revolutionize Debt Recovery Automate Your Dunning Letter Workflow

Transforming your debt recovery process is easier than you think! By automating your dunning letter workflow, you can significantly reduce manual tasks, minimize errors, and enhance your collection efficiency. Discover how automation can revolutionize your approach to debt management and ensure consistent follow-ups with minimal effort.

The practice of dunning involves organisations attempting to retrieve money that their clients owe them. In the English language of the 17th century, it came from the verb "dun," which meant "to demand payment of a debt."

In the modern day, there is a prescribed process that must be followed when contacting a customer who is in default to collect payment. We will try to cover the same as well how automating the process helps in a much for efficient system.

SO, WHAT IS A DUNNING LETTER?

When an invoice is not paid on time, a debtor receives a written payment demand known as a "dunning letter." It serves to inform the debtor that legal action will be taken if the payment is not made by a certain date and that the payment is past due.

You may send the debtor up to three such letters as a business. After you submit the first dunning letter, you have the option to decide to start legal dunning procedures right away.

WHEN IS A DUNNING LETTER SENT?

An organisation is entitled to send the first Dunning Letter as soon as the payment deadline is missed for an invoice but in B2B where the buyer-seller relationship is usually long term, the sellers don’t initiate the 1st letter immediately after the due date

HOW TO DRAFT A DUNNING LETTER?

While it’s advisable to draft the dunning letter by someone who’s legally competent,  it can be done by anyone till the time they keep in mind the details that the Dunning Letter needs to contain to ensure that subsequent legal proceedings can be taken against the defaulting party. You can also automate your Accounts Receivable Process and use platforms like Inebura that comes pre-loaded with Legally Validated Dunning Letter Templates.

Read Full Article: https://inebura.com/blog/how-can-you-automate-your-dunning-letter-process

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