A collections policy is a set of guidelines that govern the accounts receivable team's procedures and helps to create a more consistent, systematic treatment strategy. Many companies may have their collections policy as part of their credit policy, but the collections policy is worth considering on its own.
Contract. Accounts Receivable. All rights the Company has now or in the future to payments including, but not limited to, payment for goods and other property sold or leased or for services rendered, whether or not the Company has earned such payment by performance.
An Accounts Receivable Collection Agreement is a contractual provision that designates one party to collect outstanding payments owed to a business by its customers.
Generally, receivables are divided into three types: trade accounts receivable, notes receivable, and other accounts receivable.