Consult a lawyer/debt collection agency to send a letter outlining the goods/services you provided, the amount owing, and requesting payment within 7 days or legal proceedings will be issued and further costs will be added to the debt.Ĥ. We look forward to building a mutually beneficial business relationship.ģ. If invoice is paid, please acknowledge payment promptly (green text recommended).Įxample: Thank you for payment of invoice #…… The existing COD terms of payment will continue for 6 months to assist in managing cashflow for both of our businesses.The matter will now be referred to our lawyers/debt collection agency. 5-6 weeks overdue – Send a Final Notice by email or letter (red text recommended):Įxample: FINAL NOTICE – Payment of outstanding invoice #… has NOT been received by the date we agreed in our phone call and confirmed by email sent on (date).You may wish to repeat what you said before but this time end the call by saying you will send an email/letter stating the agreed fixed date of payment agreed (5 – 10 business days ahead). 4 weeks overdue notice – This works better as a personal phone call NOT an email/letter.We value our business relationship so we are happy to temporarily revise terms of payment for future invoices to be COD until the outstanding invoices are settled.” Occasional short term cash flow problems may inhibit your ability to pay on time. 2 weeks overdue notice – A polite reminder in the event the invoice has been missed in their payment schedule.Įxample: “The financial pressures on businesses during COVID times impact all of us.A suggested contact timeframe is as follows: Record each time you attempt to contact the client about outstanding invoices: Send a short reminder email/letter to the client about the outstanding invoice.
EMAIL FOR LONG OUTSTANDING INVOICES FULL
State that assigned rights are not transferred until full payment is received and outstanding invoices will result in COD terms and debt recovery services will be used to the full extent of the law.Ģ. It is worth getting your lawyer to set up this document. Clearly state your terms of payment on tax invoices. Provide your terms and conditions for payment prior to providing goods or services to your clients. Here are some steps you can take to ensure you get paid on time:ġ. However, in the event this does not work, you should have a process in place to retrieve your money as quickly as possible as it may be difficult, or even impossible, to recover the money if the client becomes insolvent and goes into administration/liquidation or bankruptcy. Do you have a client who regularly pays invoices late or is refusing to pay at all? It is a common problem in business and most of the time a friendly reminder or a conversation about the issue will rectify the problem.
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