Dunning path

The dunning process describes the steps to be taken up to the receipt of a due claim from a goods or service transaction . The dunning route is set individually for each company and usually includes:

1. Reminder (payment reminder )
2. Reminder (reminder with default interest)
3. Reminder (last reminder with default interest)

The definition of a dunning path including the time periods for each stage of the dunning path (e.g. 10 days) is important for the liquidity of a company or organization in order to eliminate outstanding debts as quickly as possible. Every day a payment amount due is offset by interest losses. Therefore default interest will be charged.

After an unsuccessful company dunning procedure, the judicial dunning procedure is usually initiated by issuing a dunning notice or action for payment .