Collection Policy

A collection policy defines the procedures and timelines the accounts receivable team follows when pursuing overdue payments. The policy typically includes when to send reminders, how to escalate efforts, and when to involve management. An effective policy ensures consistency while balancing cash flow needs with customer relationships.

Struggling to prioritize overdue payments? Learn how to build a more strategic approach to collections, optimizing your collection policy with this guide: Next-Gen Collections: Data-Backed Tips to Get Invoices Paid Faster