🧭 Overview
By clearly defining the steps your business takes to manage overdue invoices, you can ensure timely follow-ups, maintain customer relationships, and reduce bad debt. Below is an example collections timeline, incorporating both global and customer-segmented workflows, as well as automations to send customer emails and assign human intervention.
🛠️ Recommended Collections Workflow
1️⃣ Automatically Deliver All Invoices
Ensure all invoices are sent as soon as they are created. Centime can automate invoice delivery via email minimizing manual effort and reducing delays.
2️⃣ Reminder: Invoice Due Date
Set up automatic email to notify customers on the invoice due date. This proactive approach helps prevent overdue payments.
3️⃣ Reminder: 7 Days Overdue
Send a gentle, automated follow-up when an invoice is 7 days past due. Include the invoice, payment methods, and a polite nudge to encourage payment.
4️⃣ 14 Days Overdue: 📞 Customer Care Follow-Up
At this stage, personal outreach can make a difference. Your Customer Care team should call the customer to check in, confirm receipt of the invoice, and offer assistance if there are payment issues.
5️⃣ 30 Days Overdue: 📞 Sales Team Engagement
For invoices that remain unpaid after 30 days, escalate the situation by involving the Sales team. Their relationship with the customer can help uncover obstacles and reinforce the importance of resolving the balance.
6️⃣ 45 Days Overdue: 🚫 Account Hold (>$500 Balance)
If the overdue balance exceeds $500 and reaches 45 days past due, the account should be placed on hold. This includes pausing any new deliveries, services, or orders until payment is received.
7️⃣ 120 Days Overdue: 📂 Collections (>$500 Balance)
For invoices more than 120 days overdue with balances exceeding $500, transition the account to collections. This final step is necessary to minimize financial risk and signal the seriousness of the situation.
Customer Segmentation
🧩 You can create as many workflows as needed to segment your customers appropriately. This strategy may work well for some customers, while others may require different timing, escalation paths, or levels of communication. Centime gives you the flexibility to tailor collection workflows to the needs of each segment.
📝 Final Thoughts
By implementing a structured, tiered approach using Centime’s automation tools and team coordination features, you can streamline your collections process, reduce aging AR, and maintain strong customer relationships.
💬 If you need help setting up these workflows in Centime, contact your Customer Success Manager.