Collections Cadence and Escalation Playbook

Collections fails when follow-up is ad hoc. The goal is not aggressive messaging. The goal is a predictable cadence and escalation ladder that improves cash while maintaining relationships.

What you will produce

1. A collections cadence tracker
2. An escalation ladder by aging bucket
3. A promise to pay log
4. A weekly AR huddle agenda
5. Credit hold guidance aligned to the cadence

Cadence by aging bucket

0 to 30 days past due:

• friendly reminder
• confirm invoice receipt and payment date

31 to 60 days past due:

• manager follow-up
• confirm dispute status or payment plan

61 to 90 days past due:

• escalation to finance lead
• confirm payment date in writing

90 plus days past due:

• executive escalation
• credit hold and future work review

If a dispute exists, route it through the dispute intake workflow immediately. Do not debate via collections emails.

Templates

A) Collections cadence tracker (copy and paste)

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Collections Cadence Tracker

| Customer | Invoice # | Due date | Days past due | Next action | Owner | Last contact date | Promise to pay date |
| -------- | --------- | -------- | ------------- | ----------- | ----- | ----------------- | ------------------- |

B) Escalation notice (copy and paste)

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Subject: Past due escalation for Invoice [#]

Hi [Name],

Invoice [#] is now [days] days past due. We need a confirmed payment date.

If payment cannot be made by [date], we will escalate account status and review credit hold options until the balance is resolved.

Please reply with your plan to resolve.

Thank you,
[Name]

C) Promise to pay log (copy and paste)

Copyable template (TEXT)
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Promise to Pay Log

Customer:
Invoice #:
Amount:
Promised payment date:
Confirmation received (yes or no):
Notes:
Owner:

D) Weekly AR huddle agenda (copy and paste)

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Weekly AR Huddle (20 minutes)

1) Top past-due accounts and next actions
2) Disputes blocking payment and owners
3) Escalations and credit hold decisions
4) Promises to pay coming due this week
5) Risks to cash forecast

KPIs to track

• percent of past-due invoices with next action assigned
• promise to pay kept rate
• past-due dollars by aging bucket
• dispute cycle time (if disputes block collections)
• DSO trend month over month

Definition of Done

• Every past-due invoice has an owner and next action
• Promises to pay are tracked and verified
• Escalation triggers are consistent and documented
• Credit hold decisions are tied to clear rules