Collection Process

The collection process starts after the customer receives the invoice for processing and payment. The process takes place daily and is divided into two subprocesses: Pre-Collection and Collection.

Pre-Collection 

The “Pre-Collection” subprocess starts when the collection team makes the first contact with the customer, before the invoice is due. This subprocess has the objective of identifying if a customer is a potential “non-payer” or to receive the promise of payment in the due date from said customer. Pre-collection is done via e-mail by finance, 5 days before the invoice is due and the communication is sent to the same contact who has received the document for payment. 

In case the customer informs the collection team that they did not receive the invoice, a new copy will be sent to them. When we are informed that the invoice is incorrect, we open a request to the billing team to check the document that was sent to the customer. 

These two possibilities indicate that the customer is at risk of being a “non-payer”. When the customer informs us that the invoice is correct and it will be paid in due time according to the contract, the promise of payment is registered. 

Collection Process

1. Initiation:

   • The collection process commences once the customer receives the invoice for processing and payment.

2. Pre-Collection:

   • Objective: Identify potential non-paying customers or secure payment commitments before the invoice due date.

   • Initiation: Begins five days before the invoice due date.

   • Communication: An email is sent to the customer's designated contact person.

   • Actions:

     • If the customer claims non-receipt of the invoice or disputes its accuracy, a new copy is sent or a request is raised for billing team verification.

     • If the customer confirms the invoice's accuracy and promises timely payment as per contract, the commitment is recorded.

3. Collection:

   • Trigger: Initiated upon overdue status of the invoice and lack of response during pre-collection.

   • Segmentation:

     • Customers with overdue amounts smaller than $5,000.00.

     • Customers with overdue amounts equal to or exceeding $5,000.00.

   • Contact Sequence:

     • For Customers with Overdue Amounts < $5,000.00:

       1. First email contact: 5 days after the due date.

       2. Second email contact: 15 days after the due date.

       3. Finance team will contact the CSM to check if there is any other contact that we could send an email or phone: 20 days after the due date.

       4. Third email contact: 25 days after the due date, CSM is included in communication. If it's an account through a partner, Daniel Hauser Rosenberg will be contacted directly by the finance team.

       5. Fourth email contact: 30 days after the due date (Head of Finance will send this email)

     • For Customers with Overdue Amounts ≥ $5,000.00:

       1. First email contact: 5 days after the due date.

       2. Second email contact: 10 days after the due date, CSM is included. If it's an account through a partner, Daniel Hauser Rosenberg will be contacted directly by the finance team.

       3. Finance team will contact the CSM to check if there is any other contact that we could send an email or phone: 12 days after the due date.

       4. Third email contact: 15 days after the due date.

       5. Fourth email contact: 30 days after the due date (Head of Finance will send this email)

   • Involvement of CSM: If no response from the customer, CSM is included to assist in contact or identifying new contacts. CSM has 20 days to act

• Every 15 days the finance team will share a spreadsheet with all the accounts above 30 days of overdue.

4. Cancellation Process:

   • Please check the process on the following link.

5. Write-off Process:

   • Initiated after 90 days of non-payment.

   • Approval required for write-off:

     • For overdue amounts < $5,000.00: Head of Finance/CFO.

     • For overdue amounts ≥ $5,000.00: COO (first approver), Head of Finance/CFO (second approver), CEO (final approver).

   • Upon approval, the Finance team informs the Head of Revenue Operations of total payment received for CRM deal cancellation and move to Closed Lost status.

6. Conclusion:

   • Collection process concludes upon payment receipt or workspace cancellation.

This process aims to streamline communication, establish clear escalation paths, and ensure accountability throughout the collection cycle. Regular monitoring and analysis will help in identifying areas for improvement and maintaining an effective collection strategy.

After the “write-off” is approved, the Finance Team has to send the Head of Revenue Operations the total amount paid until that day by the customer so she can cancel the deal in the CRM and move to Closed Lost.

The collection process ends after payment is received or when the workspace is canceled (churn).

Appendix

Pre-Collection Email:

Subject: Reminder: Invoice Due in 5 Days

Dear [Client's Name],

I hope this email finds you well.

I am writing to remind you that invoice [Invoice Number] in the amount of [Invoice Amount] is due for payment in five days, on [Due Date]. We greatly appreciate your business and want to ensure that our records remain up-to-date.

If you have already processed the payment, please disregard this reminder. However, if you have any questions regarding the invoice or need assistance in any way, please don't hesitate to reach out to me directly.

Thank you for your attention to this matter. We value your partnership and look forward to continuing to serve you.

Best regards,

[Your Name]

First Email Contact:

Subject: Reminder: Outstanding Payment for Invoice [Invoice Number]

Dear [Client's Name],

I hope this message finds you well.

I'm writing to bring to your attention the outstanding payment for the invoice [Invoice Number]. As of today, the payment for this invoice is overdue.

Attached to this email is a copy of the invoice for your reference. If the payment has already been processed, we apologize for any oversight on our part, and we kindly request that you provide us with the transaction details for our records.

Thank you for your attention to this matter. We appreciate your prompt cooperation and look forward to resolving this issue amicably.

Best regards,

[Your Name]

Second Email Contact:

Subject: Follow-up: Outstanding Payment for Invoice [Invoice Number]

Dear [Client's Name],

I hope this email finds you well.

I'm following up on my previous email regarding the outstanding payment for the invoice [Invoice Number]. Despite our earlier communication, it appears that the payment for this invoice is still pending.

Please let us know if there are any issues or challenges preventing you from making the payment at this time. We are here to assist you in any way we can and are committed to finding a resolution that works for both parties.

Attached to this email is a copy of the invoice for your reference. If the payment has already been processed or if you have any updates regarding the payment status, please provide us with the relevant details for our records.

Your cooperation in resolving this matter is greatly appreciated. Should you have any questions or require further assistance, please don't hesitate to contact me directly.

Thank you for your attention to this matter, and I look forward to hearing from you soon.

Best regards,

[Your Name]

Third Email Contact:

Subject: Final Reminder: Outstanding Payment for Invoice [Invoice Number]

Dear [Client's Name],

I hope this email finds you well.

This is a final reminder regarding the outstanding payment for the invoice [Invoice Number]. Despite our previous communications, it appears that the payment for this invoice remains unresolved.

At this point, we kindly request that you prioritize the settlement of this invoice to avoid your workspace cancellation, please note that after 90 days of overdue we are entitled to cancel it. Your prompt attention to this matter is greatly appreciated, and it will enable us to continue providing you with the level of service and support you expect from us.

Attached to this email is a copy of the invoice for your reference. If the payment has already been processed or if there are any updates regarding the payment status, please provide us with the relevant details for our records.

If you require any assistance or have any questions regarding the invoice or payment process, please do not hesitate to reach out to me directly. I am here to help in any way I can.

Thank you for your cooperation and understanding. We value your partnership and look forward to resolving this matter amicably.

Best regards,

[Your Name]

Notification Email Contact:

Subject: Important Notice: Future Action Regarding Outstanding Payment

Dear [Customer's Name],

I hope this email finds you well. We are reaching out once again regarding the outstanding payment(s) related to the service(s) provided by our company.

After three unsuccessful attempts to communicate and rectify the situation, we would like to reiterate the importance of the pending payment. As a company committed to transparency and the quality of services rendered, we understand that unforeseen circumstances may arise. However, it is vital for the continuity of our partnership that financial obligations are met within the established deadlines.

We would like to remind you that, as per the terms and conditions of the contract signed between both parties, non-payment may result in the suspension of services provided by our company. Therefore, if the payment is not made within the next 30 days from this notification, we will be required to proceed with the suspension of your workspace.

We understand that adverse circumstances may arise, and we are willing to discuss payment alternatives or resolve any issues that may be preventing the fulfillment of your financial obligations. If the payment has already been processed, we apologize for any oversight on our part, and we kindly request that you provide us with the transaction details for our records.

Therefore, we kindly request that you contact us as soon as possible to resolve this matter amicably and avoid any service interruptions that may affect your operations.

We are available to discuss any questions or concerns you may have regarding this matter. We appreciate your attention and cooperation.

Sincerely,

[Your Name]

Cancellation Email Contact:

Subject: Urgent Notice: Suspension of Workspace Due to Outstanding Payment

Dear [Customer's Name],

I hope this email finds you well. We regret to inform you that, despite our previous communications, the outstanding payment related to the service(s) provided by our company remains unpaid.

As per our previous correspondence and the terms outlined in our contract, we have reached the unfortunate but necessary decision to suspend your workspace effective immediately due to non-payment.

Please note that this suspension includes access to all services and resources associated with your workspace. We understand the inconvenience this may cause, and we sincerely apologize for any disruption to your operations.

We urge you to settle the outstanding payment as soon as possible to restore access to your workspace and resume normal operations. Once the payment has been processed, please notify us immediately so that we can reactivate your services promptly.

If your account is on a Cloud deployment, we remind you to ensure a data backup. Please be advised that Rocket.Chat stores user data in the workspace according to our Terms of Service. You will retrieve your User Data or copies of your User Data from Rocket.Chat within thirty (30) business days of the termination or expiration of these Customer Terms.

If you require any assistance or wish to discuss payment options, please do not hesitate to contact us. We are committed to resolving this matter swiftly and ensuring minimal disruption to your business.

Thank you for your attention to this matter. We appreciate your cooperation and understanding.

Sincerely,

[Your Name]