What Is Credit Collection: Meaning, Process, Best Practices

Credit collection, also known as debt collection or accounts receivable collection, is the process of recovering overdue payments from customers who fail to pay their invoices on time. It typically starts with reminder notices, followed by phone calls, negotiation, and, if necessary, the involvement of collection agencies or the use of AI-powered collection automation software . Done effectively, credit collection balances timely payment recovery with preserving long-term customer relationships.