- It provides a structured approach to risk management and debt collection process
- It provides a standard rules for everyone in the organization to follow/practice
- It helps ensue a consistence approach among customers and reduces a chance of personal bias which affect the decision making process
- It can be reviewed/modify by top management to adopt with new business requirement
Day 1: Issue invoice and send to customers Day 15: Call customers to check for receipt of invoice Day 31: Call customers and ask for payment Day 45: Send demanding payment letter Day 50: Call customers to chase for debt Day 60: Send 2nd demanding payment letter Day 90: Pass issue to legal department to chase for debt