Cash collection

It has been suggested that this article be merged into Debt collection. (Discuss) Proposed since January 2024.

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Cash collection is the process of collecting cash payment to fulfill the debts of customers' overdue invoices. Debts currently being processed for cash collection are said to be in collections.[1]

Invoices are always issued with terms of payment.[2] These terms vary widely from 'Cash terms', meaning that the invoice is due immediately[citation needed], to many forms of 'Credit terms' (for example 30 days from date of invoice[3]).

Unpaid invoices are considered outstanding, and those which remain unpaid for periods longer than their 'terms' indicate are considered overdue. It is the aim of the Cash collection function of a business to collect Monies for all outstanding invoices before they become overdue and to mediate payment arrangements to ensure that invoiced debts do not become doubtful or bad.

## See also[edit]

* Invoice
* Accounts receivable

## References[edit]

1. ^ Yale, Aly (2022-09-22). "What happens if your debt is sent to collections? - CBS News". www.cbsnews.com. Retrieved 2024-01-13.
2. ^ "Invoicing and taking payment from customers".
3. ^ "Getting your terms and conditions right | Business Link". Archived from the original on 2011-06-10. Retrieved 2010-04-11.

## External links[edit]

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