Learning how to chase outstanding invoices is an important task for any type of business. This needs to be done with tact and patience, or you risk gaining a reputation within your industry for the ways in which you demand payment. Here at Direct Route, we have many years of experience working with businesses of all types to help them receive payments even after weeks or months of chasing. Keep reading as we share our top tips for dealing with an outstanding invoice, so that your business can remain profitable for years to come.
Be Patient During the Process
It’s so easy to lose our patience when it comes to learning how to chase outstanding invoices. We know that it’s so annoying to not receive payment after providing a product or service to your client, but you need to always remain professional and patience during this process. Start by using your regular tactics to collect outstanding invoice payments, such as phone calls, emails, and letters. However, when you feel like these aren’t helping you to collect outstanding invoices, you’ll want to work with our team of professionals who can guide you through this process. We know it can be daunting to think about things such as legal action, but this may be necessary in some cases. Our team can help you to decide the best route of action so that you enjoy a more profitable future for your company.
Put a Deadline for Payment on Each Invoice
The number one thing you need to do when writing an invoice is to put the deadline for payment on it. Outstanding invoices often happen due to a lack of urgency, which may be a result of you not putting the date on the invoice. When your clients don’t know when the payment is due, they have every right to take their time to pay you. An outstanding invoice is only outstanding when there was a deadline for payment. Typically, most companies offer about a 30-day payment period, which is the enough time for clients to pay you. From there, you can send reminders throughout this time and start to take more serious action as the deadline passes.
Send Multiple Reminders
We all know that emails and letters can get lost or forgotten in this day and age. With so much communication each day, it’s almost impossible for some of us to stay on top of everything. For that reason, resending an invoice is a sensible thing to do if you haven’t received payment after a week or two. You can send it with a polite reminder of the original date that you sent the invoice, so that you don’t seem like you are hassling the client too much. Remember, you will likely want to work with the client again in the future, which is why you need to be very mindful about the type of contact you have. We recommend always trying to stay calm and professional during any contact, so that you don’t impact your customer service reputation even when dealing with the worst types of clients.
Take Legal Action When Needed
Our team knows how daunting it can be to consider legal action for missed payments. Outstanding invoices could lead to your business ending up in a very difficult place financially if you let too many of them build up. For that reason, we recommend thinking about taking legal action when too much time has passed, or you can no longer get in touch with the client who owes you money. This isn’t something you should avoid just because it’s a very serious process, as you may end up bankrupt if you let too many invoices go unpaid. Our team can support you with this process and discuss with you whether we think this is the right course of action for your business.
As you can see, there’s a lot to consider when chasing outstanding invoices. Our top tip is to remain calm and professional at all times, no matter how frustrated you are with a client. Our team will be here to support you during this challenging time, as we know how difficult some people can be to get in touch with and receive payment from.
If you have any questions about the topic of chasing outstanding invoices, get in touch with our team today. We offer a range of services for businesses, all designed to make your life as easy as possible as a business owner. You’ll then be able to focus on the things you do best, while also improving your financial situation as a business. The past few years have been incredibly challenging for business owners, but we’re here to help you get back on track once again and continue to grow over the upcoming years.