Dunning (process)

Okay kiddo, so you know when you borrow a toy from your friend and you promise to give it back but you forget to do so? This is kind of like what happens when people owe money to a company or person, but they forget to pay it back.

When a person does not pay back the money they owe, the company or person who lent the money needs to remind them to pay it back. This is called a 'dunning process'.

The dunning process is made up of different steps to remind the person who owes money to pay it back. The first step is usually a friendly reminder, like a letter or message, telling the person that they need to pay the money back. If the person still doesn't pay back the money, the company or person may send more serious reminders, such as phone calls or emails.

If the person still does not pay back the money, the company or person will eventually have to take legal action to get their money back. This means they will go to court and ask a judge to help them get their money back.

So, the dunning process is like reminding your friend to give back your toy, but with grown-up money instead. It's important to pay back what you owe, so people don't have to go through the dunning process.