In any business, one of the most important parts is collecting the failed payments. In addition, this mainly happens in the areas of business, with organizations where there is a recurring billing or invoice collection or open invoices or receivables like that of subscription based SaaS business or it happens with some non-profit business organization that gets the monthly payments or donations. Commercial dunning procedure or dunning procedure is a way in which the dunning company tries to collect the customer’s payment or invoice collection or open invoices or receivables by giving them a reminder by e-mail. Several reasons are there as to why the payments fail or there is an outstanding debt to recover or collecting invoices & the customer does not pay for the services. Some of the common reasons as to why the customer does not pay for the services is because of the following – the credit card expired, the credit card was cancelled, there are no sufficient funds available, fraud alert on the credit card, the billing address of the customer has changed, or the customer changed their account number. There is also customer who does not pay for craftsman invoice.
Commercial Dunning Process –
In a commercial dunning procedure, or the dunning procedure the company gives to the customer, several different types of reminders ranging from gentle reminders, to other legal reminders too and reminder by e-mail to recover the outstanding debts or collecting invoices. Apart from that, the law on the commercial dunning procedure and giving dunning letters differs from state to state and from country to country. Therefore, it is important that before any company chooses to opt for commercial dunning process, they should check the regulations in their area. If invoice not paid what happens is that it shows your loss. Apart from that, it is also important for people to know that, there is a difference between a dunning procedure and commercial dunning procedure or kaufmännisches Mahnverfahren. The main difference is that, a commercial dunning procedure is for those kinds of customers or businesspersons, who have entered into contract with company or the service provider and those people, are in default of their payment.
Objectives of Dunning Process –
One of the main or pivotal objectives of the commercial dunning procedure service providers is that, to let the consumers or the businessperson who has availed the services or bought the goods, to let them know that there is a problem with their payment. And, open invoices or receivables or invoice collection or collecting invoices has not been paid or invoice not paid and there is outstanding debts to recover. In the commercial dunning procedure, the dunning company takes care of the payment issues and also make sure that the relationship of the customer doesn’t gets disrupted with the service provider or businessperson. Apart from all of these, it is very important for the businessperson to pursue their failed payments or invoice collection or outstanding debts to recover or collecting invoices because if they do not pursue it in an organized way, they stand to lose more money, than they may realize. If too much of pressure is also applied, then there are chances that the customers can even cancel their accounts, or customer does not pay for craftsman invoice, which is mostly due to the billing issues. Apart from that, research has shown that, there are more than 30% of the customers, who leave a brand because of the bad experience they get. There is also extra judicial dunning process expiration, after which new notices should be issued.
Many customers who do not know that their lack of payment causes so much of problem from supply chain to payroll. Therefore, it is very important for businesspersons to know that, it is wise decision if they automate the payments recovery or invoice collection or receivables or open invoices. It will help you to retrieve default payments with minimum effort from the side of your company. kaufmännisches Mahnverfahren or Commercial dunning procedure can also be done through reminder by e-mail. One of the important factors in the outstanding debt collection process is good communication skill. It can affect how the customer perceives your brand or the services of the company. In a commercial dunning process, it is very important to draft your e-mail with care. There are also limitations for dunning procedure, after which extra-judicial dunning procedure expiration comes.
Points to Ponder While Dunning –
There is some important thing that you need to consider while drafting an e-mail or sending reminder by e-mail, through a lawyer for the customer to recover the payment in arrears or money collection. The first and the foremost thing that you need to do in a commercial dunning procedure is that you should never blame your customer for the fail payment or invoice not paid. If invoice not paid what happens is that your overall turnover will show loss statement. Earlier, the dunning company used to make this mistake. This was one of the reasons -why they failed to recover the lost revenue. You should always give the customer a chance to correct any issues. Once your extra judicial dunning procedure expiration happens, you will have to start fresh with the notices. Dunning procedure can be done at 10 levels, after which extra judicial dunning process expiration will happen, after 10 levels. After all of these, a final reminder with threat of legal action is given and the final reminder with threat of legal action sample you can get online.
Polite Explanations in Dunning Process –
It can happen that they may pay the money after resolving issues. Next, it can also happen that the customer has already invested in your product or service, all you need to do is to show the customer does not pay invoice and there is a need for money collection or debt collection or debt recovery. In addition, you need to politely show the customer through a lawyer or explain them in the commercial dunning procedure that they may lose premium access to special products until the time they do not make payment or debt collection or debt recovery is not done. Also in the dunning procedure, it is important that you make it easy for the customer to pay the money. And, even after that, if the customer does not pay invoice, then you should take stringent legal action.