Definitions (3)
Related Terms
1. General: Process of recovering amounts owed to a firm by its customers.
2. Banking: (1) presentment of a check or draft for payment and, subsequently, receipt of its amount in cash or as a credit entry. (2) Transfer of delinquent or past-due accounts to a collection agency (or a special department set up for the purpose) for full or partial recovery of the amount.
3. Foreign trade: Process through which the global banking system acts on behalf of an exporter (or seller) to collect cash payment or a time draft from the importer (or buyer) in return for documents required for taking delivery of the ordered goods.

Use 'collection' in a Sentence

It is always a hassle when customers do not pay their bills and our company has to send their information to a collection agency.
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Over the years I have allowed many bills to go unpaid, so I get a lot of calls from many different collection agencies.
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I had a really big collection of action figures that I got when I was younger and saved until I was an adult.
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