Collections Management

Definition

Collections management is the process of managing the collection of payments from customers. It involves tracking customer payments, setting up payment plans, and ensuring that customers are paying on time. It also involves managing customer accounts, setting up payment reminders, and providing customer service.

Example

For example, a company may have a collections management system in place to track customer payments. The system may be used to set up payment plans, send payment reminders, and provide customer service. The system may also be used to track customer accounts, set up payment plans, and ensure that customers are paying on time.

Why it Matters

Collections management is important for businesses because it helps them to ensure that customers are paying on time. It also helps businesses to track customer accounts and set up payment plans. By having a collections management system in place, businesses can ensure that they are collecting payments from customers in a timely manner. This helps businesses to maintain a healthy cash flow and ensure that they are able to meet their financial obligations.