B&B online Credit Management Procedures
The following procedures are to be used for all B&B online customers who are overdue in paying
Account No Description Comment
001 Premium Accounts High spend customers
002 Corporate Accounts Companies, Pty Ltd, etc.
003 Risk Accounts Continual bad payers
004 Priority Accounts Low spend customers
NB: Anything under $30.00 is not pursued beyond the original invoice and is merely carried
forward to the next billing run.
401 Overdue bill
501 Not used
601 Account with collection agency
701 Suspected fraud
Live account progression
Account type Account types Account types
001, 002 003 & 004
Bill issued Day 1 Day 1
Bill received Day 6 Day 6
Due date Day 30 Day 14
Overdue Notice issued Day 35 Day 25
Courtesy call Day 60 Day 45
Cancellation of service Day 90 Day 65
Debt recovery progression
Account types Arrears Cancellation Customer request
Cancel all services Day 90 Day 90
Send Letter of Demand Day 106 Day 106
Contact legal representative Day 120 Day 120
Transfer to collection agency Day 140 Day 140
Default added with credit agency Day 141 Day 141
Initial Credit Contact
It is imperative that all accounts highlighted for action are investigated on a daily basis. Accounts
will continue to highlight to an operator until action is taken.
When a customer’s account highlights for action, the customer will need to be contacted to
arrange payment. When speaking to the customer advise them of the:
Full amount of their arrears
Amount of the administration fee that will apply if they are cancelled.
The outcome from your telephone conversation will be one of the following:
1. You are unable to contact the customer
2. The customer will make a promise to pay
3. The customer will provide receipt details
4. The customer will make an extended payment arrangement
The steps you follow will be dependent on the above outcome. The correct option should be
followed as outlined in the following pages.
If the customer has made a promise to pay
Access the customer’s account and add notes indicating the arrangement made.
Record detailed notes including the:
amount to be paid
date payment is to be made
method of payment.
Taking bookings for customers in default
No customer who has an outstanding bill of more than $30 is allowed to use their line of credit for
further bookings until all outstanding amounts have been paid in full. This is based on actual
payment and not just a promise to pay.
All CSO’s must refer booking requests above $1000 and/or for customers in arrears >60 days, to
their Team Leaders for authorisation. All bookings for customers in default must have the
1. Customers must pay 50% of their total accommodation and booking costs prior to their stay
at the B&B.
2. This payment must be made by either cash or card
3. The customer is to be informed of this decision when they make any booking, until all arrears
are paid in full.
4. CSOs must email their team leaders with details of any bookings outside of their discretion to
approve. They should make a recommendation with this email.
5. Bookings may be denied to some customers in default. Team leaders alone make this
decision within their discretion.
6. No booking can be made to any customer who is >90 days in arrears.
When an account is overdue, special payment terms may be required until the debt is cleared.
These terms can be negotiated, but cannot exceed 30 days in length.
Once an account is 90 days overdue then debt recovery action must be started (65 days for risk
accounts). A payment plan cannot take payments beyond the time when debt recovery is to be
Two types of payments can be accepted:
One single payment
Multiple payments (not to exceed five separate payments).
There should never be longer than 30 days between payments and they should be spread as
evenly as possible until cleared.
Try to avoid:
Customers making a single payment close to the debt recovery period.
A multiple payment plan that has most of the amount owing being paid later in the plan. Try
to ensure the payments are as even as possible.
When any type of payment plan is agreed to, firm dates must be established for each (or the only)
payment. These dates must be recorded on the system and tracked to ensure they are made.
Note that in certain cases, a customer can be asked to clear an overdue amount within 14 days.
This option can be used when:
The overdue amount is under $1000
The account has been overdue for longer than 60 days.
Factors to consider
All operators are expected to take into account the volume of customer business and their net
worth to B&B online when making a payment decision. If you are unsure about making a
decision on any particular customer, you should refer the matter to the Senior Team Leader
Other criteria to consider in this regard include:
The length of time the customer has been with B&B online
Previous payment history
Whether any cheques have been dishonoured in the past.
Cancellation of service
Once a customer has reached 90 days in arrears then all services must be cancelled. There are
no exceptions to this rule.
A note is to be added to the account that no further bookings are to be taken.
Any existing bookings taken prior to this date will be honoured.
Debt recovery procedures
Refer to the debt recovery progression chart for the days when appropriate action must be taken.
Once an account reaches the debt recovery stage, they must follow the correct times for action.
There is NO discretion to move from these timelines for any customer.
Once a customer is in the debt recovery stage, they may make repayments to their debt, however
action will only be stopped if the debt is paid in full. Action cannot be suspended for a part
If a customer does clear the amount during the debt recovery period then normal service is not to
be resumed straight away. All such accounts must be referred to the Senior Team Leader Credit
for special review.
Remember to note action taken on an account during each stage of this process.