About Payment Reminders/Debt Collection Notice

Most companies selling products on credit will sooner or later come across customers who do not pay. In these instances, you can either post the customer's outstanding payment as a loss or try to recover the debt. The latter option is the most common course of action.

The first thing you can do is to send a payment reminder and/or a notice of debt collection to the customer. In your Mamut system, this is done via an easy-to-use wizard. If your customer does not pay after receiving the first reminder, you may want to consider sending a second reminder, reiterating that you will be charging statutory interest. Should this still not result in a payment, you should send a final reminder letter in which you inform your customer that you will pass the matter on to your debt collection partner and that debt collection also incurs extra fees, which will be added to the original outstanding amount.

Note! Please contact your debt collection partner for more information about what information should be included in the debt collection notice.

The parameters for an overdue account being suggested for payment reminder/notice of debt collection are set in the Payment reminder settings. Whether a customer is to be reminded and to which group the contact belongs to is specified for each contact in the contact register. Default reminder settings are inherited when a new customer is created and are specified in the Company Settings. The reminder status for overdue accounts can also be changed for individual Customer & Supplier ledger items.

If overdue accounts and notices of debt collections are not paid within a certain period, you can pass the invoices on to Debt collection. Read more about this here.

An alternative to following up your customer invoices yourself, you can send the claims to Factoring. To do so, you will need to have a contract with a factoring company. In Mamut, you are able to generate factoring files containing information about outstanding amounts and credit notes, which you can send on to your appointed factoring company. Read more about this here.