Post by fiweka1494 on Feb 26, 2024 22:50:40 GMT -5
The collection letter can be a direct means of contacting the customer, most of the time being used via message or email. However, it can be difficult to choose which type of charge to make and know the ideal time to proceed. With this in mind, we will help you understand all the types of charges that exist and how to identify the differences between them and better understand how the collection letter works for different situations. You can also count on a model that we created to inspire you. 5 types of charges and what each one is 1. Direct billing With direct billing, it is possible for the company itself to control and monitor the payment status of each customer because registration can be done through its own system. The company provides a copy of the invoice to the customer , that is, it also keeps a copy, so that it is possible to monitor the payment status and due dates. With this billing style, the customer can also opt for online bills. Therefore, the company itself is responsible for creating the billing letter and sending it to customers in each situation, such as at the time of purchase and in case of late payment, as we will see later. 2. Indexed billing Indexed charging deals with situations in which the value can be changed without a decision by the company, considering external factors, such as the value of the dollar and even the payment date. In other words, the amount to be charged depends on an external factor. 3. Quick billing This charging method is the most flexible of all, as the company itself can issue the invoices , but must, however, register them. Fast billing allows for greater financial discounts and even changes to the due date.
It is the ideal way to maintain an ongoing relationship with customers and allows for a short billing period. 4. Simple billing Simple charging is done by issuing duplicates, due to the relationship between a financial institution and the company. In this modality, the institution is responsible for charging and crediting the payment, with the company only being Business Owner Phone Numbers List responsible for defining deadlines, fines, protests and monetary correction. The bill is registered and, as soon as it is paid, the transaction is carried out within the period stipulated by the financial institution. 5. Linked billing With this charge, the bank transfers payment to the company in the form of credit in two types: • Discounted In this modality, the company is responsible if payment is not made, which may generate interest, because the bank becomes the creditor of the securities. In other words, if the customer does not make the payment, the company returns that amount, with interest, to the bank.
Escrowed If you choose this category, the bank will receive collection documents in exchange for a loan for your company. Thus, when a bill is paid, the amount is deducted from this “debt”. The main thing to understand what it is and what the difference is between simple collection and linked collection is that we have to think about the relationship of credits, as linked collection occurs when the company needs advance payment, so the bank becomes a creditor of the securities, following one of the two modalities that we saw above. In this way, simple collection does not require the company to be responsible if the customer does not pay the bill, because there is no advance payment and consequently there is no credit debt.
It is the ideal way to maintain an ongoing relationship with customers and allows for a short billing period. 4. Simple billing Simple charging is done by issuing duplicates, due to the relationship between a financial institution and the company. In this modality, the institution is responsible for charging and crediting the payment, with the company only being Business Owner Phone Numbers List responsible for defining deadlines, fines, protests and monetary correction. The bill is registered and, as soon as it is paid, the transaction is carried out within the period stipulated by the financial institution. 5. Linked billing With this charge, the bank transfers payment to the company in the form of credit in two types: • Discounted In this modality, the company is responsible if payment is not made, which may generate interest, because the bank becomes the creditor of the securities. In other words, if the customer does not make the payment, the company returns that amount, with interest, to the bank.
Escrowed If you choose this category, the bank will receive collection documents in exchange for a loan for your company. Thus, when a bill is paid, the amount is deducted from this “debt”. The main thing to understand what it is and what the difference is between simple collection and linked collection is that we have to think about the relationship of credits, as linked collection occurs when the company needs advance payment, so the bank becomes a creditor of the securities, following one of the two modalities that we saw above. In this way, simple collection does not require the company to be responsible if the customer does not pay the bill, because there is no advance payment and consequently there is no credit debt.