Receivables Management is a professional way of dunning. The goal is to avoid payment defaults and sustainably secure the liquidity of the company. It starts with collecting, analysing and organizing open payments. Should a delay in payment occur, well-functioning receivables management will help to ensure that the recipient of the invoice is reminded of his or her obligation to pay in an effective and efficient manner.
In addition, the recipient party will be asked to settle. The receivables management process does not just begin with the collection of outstanding payments or a first payment reminder.
Especially in the business-to-business area, receivables management is used to check the creditworthiness of the business partner and to inspect the debtor and trade register as well as their annual financial statements before initiating a business transaction.
Debtor management is approached with such extensive detail. Debtor management is helpful for avoiding bad debts from the start of the process, as well as effectively counteracting already incurred bad debts. It summarizes the accounting processes of a company.
Every charter company that uses WavySys and its booking and payment processes has the advantage that there are no open receivables with confirmed bookings. When a booking is confirmed, the charter company receives a down payment of the total amount, and can therefore expect a capacity utilization. All of these features are part of WavySys’ receivables management.
A clear contract design in advance helps against the cancellation of bookings. The due date for payment should be clear in the charter contract for end customers, through either an exact payment date or a specific payment term that is agreed. E.g., payment of the booking amount upon confirmation of the booking request. Pre-formulated contracts help with the routine of contracting and reduce the time required to formulate the contracts.
WavySys recommends that clear terms and conditions are formulated on the website of the charter. These should be as simple and as clear as possible, and should also deal with the topics of dunning and debt collection. A tenant is in default of payment if he or she let the last day of an agreed payment period pass idly by.
If no time limit has been agreed between the contracting parties and no reminder has been sent, the default of payment will occur 30 days after receipt of the invoice. This regulation only applies to business customers. If the contracting party is a private customer, they must be informed of the 30-day deadline.
The letter of notice is usually informal to private customers. Nevertheless, it should contain essential points such as the invoice number, the invoice date, the due date, the amount of the outstanding receivable and a new payment term.
WavySys supports its customers in such a way that dunning is no longer needed. Automated booking and payment processes automate the tenant’s payments to the payee after a 50/50 rule. WavySys does not manage the money itself, but through digital fiduciary accounts of the payment provider Mangopay. Mangopay works with some very large and global companies and is a serious and secure partner.
WavySys has automated its booking processes, therefore 50 percent of the total payment amount will be collected immediately upon confirmation of the booking with the tenant. The other 50 percent of the sum will be collected 30 days before the tenant checks-in.
Deposit management is dealt with in the same way. WavySys‘ digital deposit solution gives charter companies a better way to deliver seriousness to their customers and prevents problems typically associated with deposit payments. These are often the biggest differences between tenants and charter companies. In order to avoid this in advance, the charterer can manage paid deposits in the E-wallet system.
As a charter company, you must register at WavySys and register your boats via this link. Receivables management and deposit management can then be used immediately and free of charge.
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