For a small business, every penny counts and you will have made sure that you have a streamlined invoicing process in place. It’s true that not every business suits the proforma invoicing model, but no doubt your business stays on top of credit control and you are efficient in getting your invoices out. Perhaps you invoice on the last day of the month or you may be super-diligent in sending out invoices immediately after work has been completed (well done, you). However, we all know that this is not the end of the story. Getting that payment in on time – or even at all – can be a challenge.
We’ve all heard it before – and perhaps you have experienced it for yourself, that the longer an invoice is overdue, the harder it is to recover. Yet many businesses avoid being proactive in having discussions about invoicing and choose to avoid what they deem as ‘confrontational’ dialogue. But if the initial approaches are handled correctly, an uncomfortable conversation will often not be necessary. The key to all invoicing communication is to strike a balance between being ‘friendly yet firm’ - keeping the conversation professional and not letting emotions come into play (this can be incredibly hard – especially if it’s your business). It could be that the friendly or the firm language, ‘dialed up’ slightly depending on what stage of the conversations you are at.
Controlaccount has 40 years of experience in credit management, working with global brands and SMEs to deliver a robust and effective strategy to keep cash flow moving – from credit control right through to debt recovery and beyond. If you are struggling with chasing payment, the following 5 x email templates should help you to move forward easily – securing payment on time, without getting emotional.
Email 1 – to be sent a week before the payment is due
Hope you are well. This is just to remind you that payment on invoice XXX is due next week.
I appreciate you are busy but please do look over the invoice when you get a moment and let me know if there are any questions relating to it.
Email 2 – to be sent on the day payment is due
Just a quick reminder that payment is due today on invoice XXX. You can make payment via BACS – all the details are on the invoice but please me today if you would like any clarification on these.
Email 3 – to be sent one week after payment was due
Our records show that invoice XXX that was due for payment on XXXXX, is now a week overdue. Please can you look into this and come back to me ASAP. If this invoice has been paid, please disregard this letter. If you would like another copy of the invoice, please let me know and I can arrange for a copy invoice to be sent out to you.
Email 4 – to be sent two weeks after payment was due
I have now written to you several times regarding invoice XXX that payment of £XXXXX was due on XXXXX. This is now two weeks overdue. Please can you settle your account as soon as possible? I have attached a copy of this invoice for your ease of review.
Email 5 – to be sent one month after payment was due
This is another reminder that we have yet to receive payment of £XXXXX which is owed from invoice XXXX which was due XXXXXX. Please, can I remind you of our terms and conditions which states that we may charge additional interest on sums overdue by 30 days or more.
Please arrange for the settlement of this invoice immediately.
What if these late payment steps don’t work?
If you still haven’t received payment after more than 30 days, its time to speak directly to your client. Consider that your client may have changed email addresses or provided an incorrect email for the person responsible for accounts payable. Rather than speak to the accounts department, speak to the person that placed the business with you, and explain clearly, firmly and without emotion that the invoice needs to be settled today. If the payment is not settled within a further 3 working days, it may be time to engage with a commercial debt recovery firm. Your client will at this point realise that things have become serious and won’t just be swept away.
Arrange a callback with our New Business team here or call 01527 549 522 for a no-obligation, confidential chat.
