Trade Credit: Cash Collection and Recovery

Collection is not a single action — it is a sequence of carefully selected interventions, each shaped by the context of the customer, the timing of the payment delay, and your strategic goals. In this lecture, we walk through the most common and effective methods of collection, from soft reminders and telephone follow-ups to negotiated payment plans and formal notices.

We group these methods by intensity and timing, exploring when to escalate and how to balance firmness with flexibility.

You'll also learn which techniques work best depending on the customer profile and the nature of the overdue balance. Ultimately, this session equips you to tailor your collection approach to each situation, increasing your chances of recovery while protecting long-term business relationships.

The success of any cash collection strategy hinges on actions taken before a payment is even due. This lecture introduces two core pillars of proactive debt recovery:

Assurance – proactive activities that help secure payment before the due date. This includes setting clear expectations, reinforcing terms, and preparing customers to fulfill obligations on time.

Dunning – the structured sequence of reminders and follow-ups that begins after a payment becomes overdue. Effective dunning requires precision, consistency, and tone management.

We examine how these two techniques complement each other, ensuring your company doesn’t just chase overdue payments — it actively reduces the chance of delay in the first place. Through practical examples, you’ll learn how to implement a system that keeps your receivables healthy and your customer relationships intact.

Negotiating with overdue customers is rarely easy — and yet it’s one of the most powerful tools in credit management. This lecture explores the art and science of overdue negotiations, showing you how to shift from passive chasing to structured, goal-oriented conversations.

We discuss how to assess the debtor's position, craft win-win proposals, and maintain a confident stance without escalating conflict.

You'll discover how to use strategic questioning, empathy, and firmness to turn excuses into commitments. This session also explores the psychology of debtors, helping you understand motivations, stress responses, and behavioral patterns that can either stall or unlock resolution. Whether you’re dealing with chronic late payers or a one-time issue, this session equips you to navigate even the most challenging negotiation scenarios.

When internal efforts don’t lead to results, it may be time to bring in external support. But escalation should never be haphazard — it must be well-timed, carefully managed, and aligned with your broader credit strategy. In this final lecture, we explore how to work effectively with collection agencies, legal firms, or other third parties.

We cover how to evaluate service providers, structure agreements, and maintain transparency and control throughout the process. You'll learn how to avoid common pitfalls — like reputational damage or high recovery costs — and ensure that third-party involvement serves your company’s interests.

Whether you're new to outsourcing collections or looking to refine your existing escalation path, this session gives you a practical roadmap for turning unpaid invoices into resolved accounts.