EFFECTIVE COLLECTION STRATEGIES IN SERVICE FIRMS: AN ANALYSIS OF PRACTICES FOR PROVIDERS TO SCHOOLS AND EDUCATIONAL INSTITUTIONS

Service providers working with schools and educational institutions face unique challenges in managing receivables, given the sector’s dependence on budget cycles, procurement regulations, and its mission-driven priorities. This paper examines effective collection strategies tailored to the education context, drawing on insights from trade credit management, public procurement governance, relationship marketing, and behavioral economics. Findings suggest that acceptance-ready invoicing, early-payment incentives, dynamic discounting, and supply chain finance mechanisms are particularly effective when aligned with the procedural requirements of educational buyers. Furthermore, evidence indicates that structured communication, documentation completeness, and alignment with academic and fiscal calendars significantly reduce payment delays while preserving long-term trust. Ethical compliance and careful contract architecture also play critical roles in ensuring financial sustainability for service providers without compromising educational service continuity. The study contributes to both managerial practice and academic literature by integrating cross-disciplinary perspectives to propose a coherent framework for receivables management in education-related services.