\uD83D\uDCD8 Introduction to Customer Write-Offs using Repossession
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Write Off: A customer is lost and the products are no more, recording a repossession with no returned products, feel like these customers are no longer paying us and they are out of the portfolio and the products are lost. |
A customer write-off refers to a situation where a customer's outstanding debt or loan balance is deemed unrecoverable or uncollectible. This typically occurs when a customer has defaulted on their payments for an extended period, and all reasonable efforts to recover the debt have been exhausted.
Roles that can do write-off in pulse 2.0
Personal Write-off
Admin
Back Office Management
Bulk Write-Off
Admin
Introduction to Bulk Write-Off
A bulk write-off refers to the process of writing off a significant number of accounts or a large amount of debt in a single transaction. Instead of individually reviewing and approving each write-off case, a bulk write-off is a feature that will allow Bboxx to expedite the process by addressing multiple uncollectible accounts collectively. Here are some key points regarding bulk write-offs:
Why Bulk Write-Off
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Repo VS Write-Off VS OptOut If the customer defaults, we will try to repossess them, and failing that, write them off. In accounting, we will have to write off certain amounts, depending on if the customer is repossessed or written off. OptOut happens when a client choose to stop the agreement intentionally |
\uD83D\uDCD8 Here is a clear process of customer write-off in the repossession process on Pulse 2.0
Identifying Delinquent Accounts: The first step is to identify customers who have failed to make their loan payments for a significant period. This could be done through regular monitoring of payment records and delinquency reports. (customers with pending repossessions)
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Accounting and Reporting: The approved write-off is then reflected in the institution's accounting system. The outstanding debt is recorded as a loss and removed from the institution's financial records. The write-off is also reported in the institution's financial statements and relevant reports for transparency and regulatory compliance.
\uD83D\uDCD8 Why Write Off
Accurate Financial Reporting: Writing off uncollectible payments allows Bboxx to present its financial statements more accurately. By removing the uncollectible debt from the books, the company provides a clearer picture of its financial position and avoids inflating its assets or income.
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