![]() Proof that you have indeed delivered the product or services as stipulated in the contract.A legally binding contract clearly outlining the payment terms.In any case, if you do decide to toe this path, you have a good chance of winning the lawsuit if you have: Plus, it’s possible that the client may have solid legal representation of their own, which means the legal action you’re taking could end up becoming a drawn-out process, costing you even more than the total amount of the invoice. There aren’t many small businesses that can afford the services of a lawyer. Most small business owners prefer to consider legal action only when every other attempt to get their overdue payment sorted out has failed. That’s what makes chasing an invoice payment such a hassle. In other words, you’re not only dealing with an outstanding payment but now you also have to pay to get the amount due. While this is usually an effective method, it also means paying for the service. If this fails, then it might be time to hire a collection agency to secure payment for the outstanding invoice(s). Start looking into collection agencies in your areaįor most small businesses, calling the client serves as a final payment reminder. By calling them, you eliminate all doubts and get to the root of the issue. Perhaps they were having difficulties accessing their emails over the last few weeks. The good thing about this approach is that it is a sure way to get the client’s attention. You earned this money, after all, and you deserve to be paid as at when due. At times, this may seem awkward, especially if this is your first time encountering outstanding invoices with a particular client. Call the client directly to sort things out. If your friendly reminder doesn’t yield any useful response, then it’s time to step it up a notch. Include other relevant information in the letter, like the number of days passed since the payment due date, any late fees that accrue with late payments, a copy of the invoice, and how the client can send their invoice payment. Keep it short but professional and get straight to the subject matter - please settle your overdue invoice. Your invoice already serves as a payment request this email is essentially a follow-up to that request. Send a short payment request email or letter If the client has confirmed receipt and the payment is still yet to be made, you can send a polite payment reminder letter stating that their payment is now past due. You may be getting agitated at the prospect of having to chase down a client over outstanding payments when in fact, they never even received your invoice. How to deal with late payments from clientsīefore you send any payment reminder, first confirm if the client received the original invoice. They can also send it after the due date is passed, though the wording in each instance will differ. Small businesses can send payment reminders before the due date so the client understands the amount to be paid. The most commonly accepted approach for encouraging these defaulters to make prompt payments is to politely follow up with them through emails or letters. In most cases, following up with customers with unpaid invoices can be challenging. You can attach a copy of the overdue invoice in your email, along with other relevant information about the payment, so the recipient knows the best way to settle it. A payment reminder is a quicker and more efficient way to follow up with the client. It’s exactly what it sounds like - an email that you send to a client or customer reminding them to settle any outstanding payments owed to you. In this article, you’ll learn how to deal with an overdue payment, as well as how to craft a compelling payment reminder email to your client(s). Nevertheless, you did the job required of you and should therefore be paid for your work. Perhaps they’ve already made the payment, but it’s stuck in transit due to issues with the bank or payment platform. They probably forgot about the due date or are dealing with financial hardships of their own. Here’s the thing though, most of the time, clients with an overdue invoice on their hands aren’t doing it intentionally to put you in such a situation. At worst, late payments can destabilize your cash flow, causing you to look to other sources to cover your expenses. And it’s not just the fact that the money you’ve been expecting hasn’t arrived long past the due date, but now you have to chase after the client, which is a hassle on its own.Īt best, you lose valuable time that you would rather spend on actually running your business or doing something you enjoy. If you’ve been in business for some time, chances are you’ve encountered your fair share of unpaid invoices and late payments.
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