what is dunning

Dunning is the process of methodically communicating with customers to ensure the collection of accounts receivable. It involves making insistent demands for the payment of a debt and refers to the collections process when used in a business context. The communications progress from gentle reminders to more intimidating letters, phone calls, and location visits as accounts become more overdue. Dunning is regulated by laws in each country to ensure that it is conducted within legal boundaries and does not involve harassment or threats. It is an important consideration for businesses as it helps maintain cash flow, control unintentional customer churn, manage customer relationships, and minimize bad debt. Dunning is also critical for supporting financial forecasting and ensuring compliance with regulations).