Dunning processes

Dunning processes refer to the systematic steps a business takes to remind customers to pay overdue invoices. When a payment is late, the company might start with friendly reminders, then gradually escalate to more formal notices, including emails, calls, or letters. The goal is to encourage timely payment while maintaining a positive customer relationship. Dunning processes help manage cash flow, reduce bad debt, and ensure the business can continue operating smoothly by efficiently recovering outstanding debts.