Category: Collections
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Collection Dispute Letters: What It Is and How To Write
Encountering disputed charges or inaccurate billing statements can be exasperating and perplexing. A collection dispute letter serves as a formidable tool to challenge such discrepancies and assert your rights. Whether it’s an erroneous medical bill, an unfulfilled service invoice, or a debt you genuinely don’t owe, understanding how to compose…
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What is Average Collection Period?
Average Collection Period Definition The Average Collection Period (ACP) is a key financial metric used to measure the average number of days a company takes to collect payments from its customers after a sale has been made. It helps businesses evaluate the efficiency of their accounts receivable process and assess…
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Accounts Receivable Factoring: A Guide
What is Account Receivable Factoring? Accounts receivable factoring is a financial transaction where a business sells its outstanding invoices (receivables) to a third party, known as a “factor,” at a discount. In exchange for the immediate cash advance, the factor collects payment from the business’s customers and retains the discount.…
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How to Optimize your DSO (Day Sales Outstanding)?
Ever felt that sinking feeling after closing a deal, knowing the actual money might take weeks or even months to materialize? In the fast-paced world of finance, particularly accounts receivable (AR), that gap between sale and payment can make all the difference. Enter Days Sales Outstanding (DSO), a metric that…
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Understanding the True Cost of Unpaid Receivables
In the world of B2B finance, unpaid receivables can be a bigger problem than you might realize. Surprisingly, it can take away as much as 15% of your yearly earnings, according to a recent study by the respected Aberdeen Group. Dealing with this issue is more than just a hassle—it’s…
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7 Proven Email Templates for Collecting Past-Due Collection
Is chasing down overdue payments becoming a recurring challenge for your business? You’re not alone. In the ever-evolving landscape of business finance, maintaining a steady cash flow is crucial. But fret not! Our collections expert team at FinFloh has put together a collection of 7 email templates for collecting past-due…
