How to collect unpaid invoices?
Small businesses that provide goods and services without prepayment run the risk of dealing with unreliable clients. Take all possible measures to prevent losing money: carefully think over a contract, establish clear terms, designate late payment fees, and briefly repeat all agreements when filling out printable invoice templates. Also, a few days before the due date, send a polite reminder that payment is expected soon. If even then you have to deal with customers not paying invoices, you need to learn how to collect the money owed to you.
Dealing with invoices not paid on time
It sometimes happens that even if you comply with the contract terms, invoices not paid might appear. If a client didn’t transfer the agreed amount to your account after the appointed date, write them a polite letter. Check if they’re okay or need your assistance, and resubmit a copy of a payment document. Typically, such a reminder about overdue invoices is enough for customers to pay.
However, if you don’t receive money for your work even after such a letter, you can call a client and send them another email, written in a stricter form. If you’re worried that the text won’t come out too polite, check out the unpaid invoice debt collection letter sample and stick to the wording used in it. Indicate that a penalty is charged for the delay, and in case of non-payment, you’ll have to resort to legal measures.
Fees for outstanding invoices
When working with payment documents, you should understand the terminology, particularly the outstanding invoices meaning. Any file submitted before the due date and not paid for by a customer yet is considered “outstanding.” That is, a recipient still has time to deposit money, and you cannot charge any fees on them. As soon as the due date passes, a paper is considered “overdue,” and you can charge a penalty on it.
Late payment fees are an essential part of any contract, so make sure you discuss them with a client and document it in an agreement. When using modern invoicing software like Invoice Maker by Saldo Apps, put this information in the “Notes” field so that it’s visible to a recipient.
How to write an email about past due invoices?
When a small business needs help collecting delinquent payments, it can use debt collector services. However, it is better not to bring the situation to it, and first try to resolve it on your own using letters. When drafting your copy, remember to remain polite and professional.
Be clear about the topic, indicate the kind of invoice you are talking about, and specify the length of the delay. Remind the recipient that you start charging fees due to non-payment and attach a copy of the completed invoice template in PDF, Word, or Excel if a client has lost the previous file. As soon as payment is credited to your account, don’t forget to thank a customer. If you need a reference, check out the example of paid invoice emails.