In most companies, receivables assurance is shaped by the sales team, not the legal department. Maturity, open account limits and collateral type are set under commercial pressure; by the time legal is involved, the receivable has long since arisen.
First decision: a customer-level collateral matrix. Management should determine in advance which customer is sold to, at what limit and with what collateral.
Second decision: a contract standard. The collection, default interest, retention of title and dispute provisions of sales and supply contracts should come from a single standard set.
Third decision: a delay protocol. It should be written down who takes which action on which day for an overdue receivable; management should see the position in a one-page monthly report.
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