Collection of receivables

Collection of receivables is the process of getting customers to pay the invoices you issued for goods or services supplied on credit. It includes sending reminders, agreeing how and when payment will be made, and recording the payment in your accounts.

In the UK this is often called credit control. You can manage it in‑house or use a debt collection agency or a solicitor. If you sell to consumers, follow fair collection practices and protect personal data. For cross‑border customers, consider currency, jurisdiction and local rules before taking formal steps.

Common methods you can use:

• Send clear reminders and statements, and keep a record of all contact.
• Offer simple payment options or a short payment plan, if appropriate.
• Resolve disputes quickly by sharing proof of delivery or acceptance.
• Escalate in stages: final demand, then a collection agency or solicitor if needed.
• Sell or assign the debt (e.g. factoring or invoice finance) to improve cash flow.
• Allocate incoming payments to the right invoice and update your ledger.