Question

Explain (50–80 words) the reasons why organisations have strict SOPs for account maintenance, when working with delinquent accounts.

Answer 1

While dealing with delinquent accounts, organisations need to have strict SOP since an account is said to be delinquent if the account has not made minimum payment due for collection and 30 days have already passed. Organisation needs to follow several guidelines to ensure timely collection while trying to retain the customers for future sales. In order to manage such accounts, organisations take steps and in rare case might also need to take a legal action against the account. Some of the steps such as listen and negotiate and regular updation of the status.