Collection Policy

POLICY / PROCEDURE
YOUR
LOGO
HERE
Collection Policy & Procedure
No.
Effective
Date
Revision
Letter
Final
Approver
1.0
[MM/DD/YYYY]
A
[Name]
1 Purpose
1.1 The purpose of collection policy is to define the objectives, responsibility and
timeline of the collection process. Moreover, to define the boundaries for staff on
what is permitted in terms of credit and overdue payment that they are allowed to
collect.
2 Scope
2.1 This policy applies to all esad departments.
3 Policy
3.1 Minimize credit
It is the responsibility of both the finance and legal department to carry out the collection process to
ensure the proper flow of cash into the companys accounts
3.2 Identifying overdue payments

It is the responsibility of the financial department to prepare a list of overdue accounts and approve it for
the collection process.
3.3 Reminder and warning letter

Esad must send letters to customers with overdue accounts to remind them to pay the amount due.
It is the responsibility of the legal department to send all required letters that contain all necessary
information to help expedite and assure the collection process.
3.4
Time allowed to pay
Customer will have no more than seven days to pay the overdue amount starting from the date the
customer receives the collection letter.
Customer will have no more than three days to pay the overdue amount stating from the date the
customer receives the warning letter.
No employee of the company is allowed to extend allowed period mentioned in 3.4.1 or 3.4.2
3.5 Cancelation of services

In case of a failure of payment on behalf of the client, all service must be put on hold or canceled, any
failure to do so must be reported to the board.
3.6 Legal prosecution

It is the responsibility of legal department to prepare a case file that contain all required document to
present the case.
The legal department must see to the follow up with external legal office or GRO that handle the case, and
provide advice as required.
3.7 Settlement
The legal office must see to obtain all of the outstanding fees and damages.
Any negotiation or settlement must not happen without the knowledge of the CEO
All settlement must be approved by the CEO or the board in writing, otherwise it is not valid.
4 Definitions
4.1 GRO: ESAD government relation officers.

4.2 The company: esad company
5 Procedure
5.1 On the 26th of each month, the CFO prepare and approve list of all overdue accounts
and send it to the legal manager.
5.2 On the third day of each month the legal manager sends warning letters to all
overdue account holders to remind them of payment and gives them 7 days
maximum.
5.3 In case of customer paying the required amount, the CFO must notify the legal
manager, otherwise, the legal manager must send second warning giving the
customer three business days to pay the required amount.
5.4 In case of customer not cooperating and paying the required amount, the following
steps must be taken and completed within 24 hours:
The operation manager prepares a plan to withdraw the manpower supplied by the company to the
customer and send it to CFO.
CFO assess the financial feasibility of the withdrawal and provide advice and comment to CEO.
CEO review the plan and the financial assessment and approve the plan.
CEO must notify the board through the secretary of the board of the approval/disapproval, attaching
approved copies of the decision, operations manager plan, and CFOs assessment.
5.5 Legal manger sends a third and final warning letter to the customer notifying him to
pay within 24 hours, the warning letter must inform the customer that all services
will be canceled according to contract terms and legal action will be carried out.
5.6 In case of customer paying the required amount after the third letter, the CFO must
notify the legal and operations department.
5.7 The legal manager prepares a case file with all required supporting documents and
delegates the case to the GRO or external legal office and notify the CEO.
5.8 Operations manager must carry out the withdrawal of manpower supplied to the
customer by notifying the police through appropriate
5.9 All manpower services must be canceled by CEO.
5.10 Withdrawal of all company personnel from client by operation manager according to
the plan.
Version : 1.0 Rev:A
6 Process Map
7 Authority Matrix
Task
List Of Overdue Accounts

Warning Letter
Withdrawal Plan
Receiving Payment
Cancelation of services
Case file
Version : 1.0 Rev:A
CEO
CFO
I
I
A,AC
I,AC
A,AC
I
P,AC
I
C
R
I
I
Position
Operations
Manager
C
I
R
I
I
I
Legal
Manager
I
R
I
I
I
R
4
I= Informed, A= Approves, C=Consulted, AC=Accountable, R=Responsible
8 Revision History
Effective
Date
Rev
Letter
Document
Author
Description of Change
9 Document approval
Author
Legal
Manager
Name of
Approver
Ahmed
Emam
Owner
Legal
Manager
Ahmed
Emam
Final
Approver
CEO
Role
Position
Version : 1.0 Rev:A
Approval Signature
Date
Approved
MM/DD/YY
YY
MM/DD/YY
YY
MM/DD/YY
YY

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POLICY / PROCEDURE

Collection Policy & Procedure

3.2 Identifying overdue payments

3.3 Reminder and warning letter

Time allowed to pay

3.5 Cancelation of services

3.6 Legal prosecution

4.1 GRO: ESAD government relation officers.

Version : 1.0 Rev:A

List Of Overdue Accounts

Version : 1.0 Rev:A

Version : 1.0 Rev:A

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