Difference between O2C collection and Bank/NBFC collection

O2C (Order-to-Cash) collection and Bank/NBFC (Bank/Non-Banking Financial Company) collection are two different types of collection processes each with their own set of unique characteristics.

1. O2C collection refers to the process of collecting payments from customers for goods or services that have been delivered. This type of collection typically takes place in a business-to-consumer (B2C) setting and involves collecting payment from individuals or smaller businesses.
2. Bank/NBFC collection, on the other hand, refers to the process of collecting payments from customers who have borrowed money from a bank or other financial institution. This type of collection typically takes place in a B2B setting and involves collecting payment from larger businesses or organisations.

In O2C collection the focus is on the prompt receipt of payments from customers for delivered goods or services, credit control and setting credit limits.

In Bank/NBFC collection, there is more focus on recovery of loans and NPA management. It may also include legal process and other recovery methods if required.

Both process have their unique characteristics, but overall goal is to recover the payment as soon as possible, with different strategies and process in place.