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Dunning

What is Dunning?

Dunning is a critical component of accounts receivable management that helps businesses recover outstanding payments from customers. It involves a series of notifications—such as emails, letters, and phone calls—reminding clients of overdue invoices and urging them to make payments.

For corporate travel and expense management, dunning ensures that unpaid travel bookings, hotel stays, or corporate subscriptions are settled on time. Businesses often automate this process to improve efficiency, maintain cash flow, and minimize the risk of bad debt.

Many travel management platforms, including TripGain, integrate dunning procedures to assist businesses in managing late payments. By leveraging automated reminders and structured follow-ups, companies can streamline their collections while maintaining professional relationships with clients.

Examples of Dunning in Corporate Travel & Expense
1.
Unpaid Hotel Bookings
A company receives automated payment reminders after a delayed hotel invoice settlement.
2.
Corporate Card Overdue Payment
Employees using company-issued cards receive dunning notifications when expenses are not cleared on time.
3.
Subscription-Based Travel Services
A business subscribed to a corporate travel platform is reminded of an overdue subscription fee before service suspension.
Frequently Asked Questions About Dunning
1.
Why is dunning important for corporate travel management?
It ensures that unpaid travel expenses, bookings, and corporate services are settled on time, preventing financial losses.
2.
How does automated dunning improve collections?
Automated dunning sends timely reminders, reducing manual effort and increasing the chances of on-time payments.
3.
What happens if a company ignores dunning notifications?
Failure to respond to dunning reminders can lead to service suspensions, late fees, or escalations to debt collection agencies.
4.
Can dunning be customized for corporate clients?
Yes, businesses can tailor dunning schedules, messages, and escalation processes based on customer agreements.
5.
Does dunning affect customer relationships?
When handled professionally, dunning helps maintain positive client relationships while ensuring payments are collected efficiently.