Escalation Pipeline

How the 5-stage collection pipeline works and how cases are escalated automatically

Escalation Pipeline

Every collection case follows up to 5 stages. Each stage increases the urgency of communication and can add collection fees to the outstanding balance. You can escalate cases manually or let PayRequest handle it automatically.

The Stages

Stage 0: Pre-Collection (Optional)

A soft, informal reminder before formal collection begins. Enable this by toggling Pre-Incasso when creating the case.

Tone: Gentle and friendly Message: “We would like to kindly remind you that the following invoice is still open.”

• No collection fees
• Ideal for first-time late payers
• After 14 days, automatically escalates to Stage 1
• Gray/neutral presentation in the customer portal

Pre-incasso is free and non-threatening. Use it to give customers one final chance before starting formal collection.

Stage 1: Friendly Reminder

The first contact assumes the customer simply forgot or overlooked the invoice.

Tone: Polite and helpful Message: “You have an outstanding invoice that requires your attention. Please arrange payment to avoid further action.”

• No collection fees added
• Email reminder sent
• Customer sees a gentle warning in the portal

Stage 2: Formal Notice

A more formal communication setting a clear deadline for payment.

Tone: Professional and firm Message: “This is a formal notice regarding your outstanding payment. Please settle this amount within 7 days.”

• No collection fees added (optional at your discretion)
• Postal letter recommended at this stage
• Customer portal shows formal notice banner

Stage 3: Collection Fees

At this stage, collection fees can be added to cover your recovery costs.

Tone: Firm and direct Message: “Collection fees have been added to your outstanding balance. Please pay the total amount immediately.”

• Collection fees added to the balance
• The customer sees the original amount + collection fee in the portal
• Payment pages show the total including fees
• Postal letter sent automatically (if Pingen is configured)

Stage 4: Final Warning

The last stage before further consequences (legal action, external collection agency, etc.).

Tone: Urgent Message: “This is your final warning. Immediate payment is required to avoid further consequences.”

• Maximum urgency in all communication
• Customer portal shows a red warning banner
• All payment links reflect the full amount including fees

Visual Progress

Customers see a progress bar in the Customer Portal showing how far along the collection process they are:

Stage	Color	Label
0	Gray	Pre-Collection
1	Blue	Reminder
2	Amber	Formal Notice
3	Orange	Collection Fees
4	Red	Final Warning

This helps customers understand the seriousness of the situation and motivates earlier payment.

Adding Collection Fees

You can add a collection fee at any stage, though it’s most common at Stage 3.

1. Open the case detail page
2. Find the Amount Breakdown section
3. Enter the collection fee amount
4. Click Update Fee

The fee is immediately reflected:

• In the case total
• On the customer portal
• On the payment page
• In postal letters and email reminders

In the Netherlands, collection fee guidelines (WIK/BIK) suggest fees proportional to the original amount. For example, up to 15% on the first EUR 2,500. Check your local regulations.

Manual Escalation

To manually move a case to the next stage:

1. Open the case detail page
2. Click the Escalate button in the case header
3. The case moves to the next stage immediately
4. You can then send a reminder with the new stage’s messaging

Escalation cannot be reversed. Once a case moves to the next stage, it stays there. Make sure you’re ready before escalating.

Automatic Escalation

PayRequest can automatically escalate cases based on how many days they’ve been overdue. This runs daily and processes all active cases.

Default schedule:

Days Overdue	Action
14+ days	Stage 0 → Stage 1 (Friendly Reminder)
14+ days	Stage 1 → Stage 2 (Formal Notice)
28+ days	Stage 2 → Stage 3 (Collection Fees)
42+ days	Stage 3 → Stage 4 (Final Warning)

When a case is automatically escalated:

• The stage is updated
• A reminder email is sent to the customer
• A postal letter is sent (if Pingen is configured, at Stage 2+)
• The escalation is logged in the activity timeline

Automatic escalation only runs for active cases. Paused cases, cases with payment plans, paid cases, and closed cases are all skipped. When you resume a paused case, it catches up automatically if enough time has passed.

Sending Reminders

At any stage, you can send a reminder to the customer:

Email Reminders

Click Send Reminder on the case detail page to send an email. The email content automatically matches the current stage — no need to write the message yourself.

Postal Letters

Click Send Postal Letter to mail a physical letter via Pingen. The letter includes your business details, the customer’s address, the amount breakdown, and a QR code for quick payment. See Postal Letters for details.

Resolving Cases

A case can be resolved in several ways:

Resolution	How It Happens
Paid	Customer pays the full amount (auto-detected via payment webhook)
Manual Payments	You register partial payments until the balance is covered
Remission	You register partial payment(s) then waive the remaining balance
Payment Plan Completed	All installments paid (auto-closed)
Manually Closed	You close the case from the dashboard
Cancelled	You cancel the case with a reason

Best Practices

Give customers enough time between stages

Don’t escalate too quickly. Allow at least 14 days between stages so customers have a realistic chance to arrange payment.

Send a reminder at each new stage

Customers need to know their case has been escalated. Always send a reminder (email or postal) when moving to a new stage.

Use postal letters for Stage 2+

Physical letters carry more weight than emails. Starting postal communication at Stage 2 (Formal Notice) shows you’re serious about recovery.

Consider payment plans before Stage 4

Before reaching the Final Warning, consider offering a payment plan. Collecting in installments is usually better than not collecting at all.

Keep internal notes updated

Document any phone calls, customer responses, or agreements in the case’s internal notes. This creates a clear record if you need to involve a legal advisor later.

Related Documentation

Creating Cases

How to open a new collection case

Payment Plans

Set up installment plans for customers

Postal Letters

Send physical letters via Pingen

Debt Collection Overview

Back to the overview