Ways to tackle overdue invoices
Accounting and then making invoices accurately are considered the backbone of a successful business. But it may become difficult in keeping track of the expansion of one’s business. But nowadays the process has been made much simpler through many companies, with the help of whom you can perfectly and simply keep ready your accounts and invoices.
But the actual issue lies in the case of overdue invoices when everything is running normally, and it comes to the day of payment. You need to inform the client, yet you feel it’s too harsh to let him know. After all he or she might not have done it intentionally at the same time you feel anxious to complete the overdue; follow these steps as a remedy
Firstly, before anything when you are taking up a new client make them understand the entire payment process clearly. Inform them about your goals of 30 days or 60 days or immediate payment strategies. Next make it evident to them that after the due date has been crossed, an amount of interest will be charged for a certain interval. So that in the future, when you are actually carrying out these, no issue arises.
An easy message
It is always possible for a person to forget such things. So the first message should not be very formal rather send in an easy message reminding him or her of the due payment. Be as informal as you are allowed to be this creates a different attitude in the client itself.
A casual email
Next step comes with sending an email. The email should be equally light and casual. Like just colloquially addressing him with his name, beginning the email with a ‘hi’, asking about him and if there is any issue, they can help with regarding the payment. Lastly, attach the invoice and then send it through.
A more formal statement
Wait for a couple of days before emailing the statement along with a message. Ask if he or she is facing any problem with your payment gateway. Bring yourself to be a bit of formal but doesn’t lose that friendly attitude. Try to keep that urgency in your tone so that the client feels that invisible pressure.
A friendly call
If none works, pick up the phone and subject your client to direct answers. This will help you decide what next you want to do. Because here the client will have to give you proper physical justifications for his delay.
Lastly, if you notice your major clients are doing the same thing, change your policy to after payment work. Otherwise, if it is a particular client go for the same solo change.
Though it is irritating, technically you won’t be in any danger, because a particular amount is continuously added to the overdue payments. Honestly, you can’t be rude or demanding with your clients but have to draw the dues.
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