Dunning

Dunning is a seventeenth century term depicting the course of business owners speaking with customers with an end goal to collect money owed for goods or services gave. This collection cycle includes heightening degrees of intensity, commonly including the accompanying iterative advances:

• Calls made to customers, delicately helping them to remember payments due
• Formal letters mentioning payment
• In-person visits requesting payment
• Hiring third-party collections agencies to lean on delinquent customers
• Compromising legal activity
• Executing prosecution

The type of dunning businesses utilize to a great extent relies upon factors, for example, the amount of debt owed, associations with customers, and period of time payments are late. While dunning is customarily dealt with by an organization's accounts receivable department, past due payments may ultimately be gone over to internal collections departments, before they're handled to outside collections agencies. Most purviews confine terrorizing and compulsion strategies.