Dictionary of Banking Terms: collection
collection
- presentment of checks, drafts, and other negotiable instruments to the point of origin, and receiving payment from the paying bank. The term covers cash items such as checks and drafts, and also noncash items, including acceptances, bonds, and notes, which are referred to as collection item. Cash items receive immediate credit collection items are credited to the owner's account only when paid.
- handling of past-due accounts by specialists, who attempt to get a promise to pay from the delinquent borrower and ultimately recover all or part of the debt. See also skip trace.
Dictionary of Business Terms: collection
collection
- presentation of a negotiable instrument such as a draft or check to the place at which it is payable. The term refers to check clearing and payment and to such special banking services as foreign collections, coupon collection, and collection of returned items (bad checks).
- referral of a past due account to specialists in collecting loans or accounts receivable, either an internal department or a private collection agency.
- in a general financial sense, conversion of accounts receivable into cash.
- one's set of collectibles.
Dictionary of Finance and Investment Terms: collection
collection
- presentation of a negotiable instrument such as a draft or check to the place at which it is payable. The term refers not only to check clearing and payment, but to such special banking services as foreign collections, coupon collection, and collection of returned items (bad checks).
- referral of a past due account to specialists in collecting loans or accounts receivable, either an internal department or a private collection agency.
- in a general financial sense, conversion of accounts receivable into cash.
