If you operate a business on an invoicing system, you are probably familiar with late payments and sometimes even non-payments. Customers will fail to pay an invoice for many reasons, from lost invoices to unexpected cash flow issues.
Regardless of their circumstances, most small business owners will be hurt by unpaid invoices, and they will need to act fast if they wish to keep their businesses afloat.
Being candid with your clients and having a backup plan will come in handy.
Sending a friendly reminder to your customer that their invoice is past due is usually the first step towards collecting an invoice if your client doesn’t pay. The money subject is never easy, and you may want to do this with a lot of care.
Use this opportunity to check whether the customer was satisfied with the services you provided and whether they would wish to discuss any other projects for the future.
Some clients will want to delay payment for a variety of fake reasons, such as losing the bill, forgetting, or having an error in the invoice. If this is the case, then sending them an updated invoice will do, regardless of how many times you had sent it already.
If the client still doesn’t pay, you should be open to taking the next step, which could be difficult but necessary.
You could go the legal way to ensure that the client pays, but make sure you have explored all available resources to recover your bill.
If this happens often, it is always a good idea to institute a payment timeline that ensures that you follow up on all invoices until the customers pay and make it a requirement for them to pay on time, or else they may pay late payment fees.
To show them that you are not joking, send them a demand letter, which is a formal written document that clearly outlines what amount is owed, how long it is overdue, and that you are ready to resort to legal measures if payment is not made.