Collections escalation

An escalation path defines what happens as an invoice gets later: who contacts the customer, how, in what tone, and what the next consequence is. A typical path runs reminder, firmer reminder, phone call, senior contact, stop on further work, formal demand or letter before action, and finally a collection agency or legal claim.

The value of a defined path is consistency. Customers learn that your reminders are followed by the next step on schedule, and nobody in your team has to decide, invoice by invoice, whether it is time to get tougher.

Escalate on behaviour as well as age: a broken promise to pay or a customer who goes silent should move up faster than one who is engaged and explaining a delay.