Module 3: Credit & Collections Basics
Six chapters on the credit and collections side of AR: evaluating a new client before extending terms, an escalating email sequence that actually gets paid, when to call instead of email, handling disputes fairly, using late fees and holds correctly, and recognizing when a client has become a real credit risk.
Setting Credit Terms for a New Client
How to evaluate a new client's creditworthiness before extending payment terms, using trade references and a simple credit limit method.
Writing Collection Emails That Get Paid
A five-stage email sequence, from a friendly reminder before the due date to a firm final notice, that gets invoices paid without damaging the relationship.
When to Call Instead of Email
Why some overdue invoices need a phone call instead of another reminder email, and how to make that call effective without damaging the relationship.
Handling Invoice Disputes Without Losing the Client
How to separate disputed from undisputed amounts, resolve billing disputes fairly, and keep collections moving on what isn't actually in question.
Late Fees, Holds, and Formal Escalation
When and how to apply late fees, pause active work, or move to formal collections, and how to do each without overreacting.
Recognizing a Client You Should Stop Extending Credit To
The warning signs that a client relationship has become a genuine credit risk, and how to change terms without necessarily ending the relationship.