Accounts Receivable Collection i the process of following up on an account receivable in order to get paid. There are various degrees of collections from a soft friendly status call to turning the account over to an attorney who will take legal action in an effort to collect the account. Factoring companies are often experts as this and act as an outsourced collection department for their clients. As time goes on an account debtor expects to hear from the factoring company regularly and often puts those invoices higher on their priority to pay. Establishing a solid collection process is good for the client and the factor as it speeds up the client’s cashflow even more and helps to reduce the factor’s risk of nonpayment.
