Chasing Overdue Invoices – A Complete Guide On What You Should Do
December 14, 2021
There is no denying that chasing overdue invoices is one of the hardest things that a business has to do. Things can be much harder for SMEs as they are highly vulnerable. However, late payments and overdue invoices are more common than you think. The fact is that it is an area that you need to learn to navigate to keep cash flowing. Unpaid bills affect cash flow which poses a serious threat to your company’s ability to carry on trading. We have prepared a guide to help you get started with chasing overdue invoices.
Contact the Customer
The first step that you need to take to retrieve an overdue invoice is to get in touch with the customer who has failed to clear their debt. If you are lucky, it might be the only step that you have to take. There are some customers who simply forget about having to clear the invoice. Hence, all you have to do is let them know that they have to make a payment to clear their overdue invoice.
It is advised that you start the debt collection process by sending a friendly email or letter. You can also make a phone call to check up on the client. However, you have to ensure that you do not say anything that harms your relationship with the customers. Here is how you can write an overdue invoice email or letter.
- Keep Things Light: A light touch is all you need to get customers to clear their overdue invoices. When you keep the overdue invoice letter working friendly and respectful, you provide an opportunity to customers to save face and preserve your relationship.
- Unless Customers Push It: There will be some customers who will hope that you will move on and think that the invoice is not worth your time which is why you will need to tailor your language accordingly. Only if the invoice has been overdue by a few days should you keep things light. However, if it has been over 3 months, your wording will need to be firm and you must convey an urgency through your request.
- Enclose the Invoice: In addition to getting the wording right, you also have to attach the invoice to the letter or email. If you are sending an email, you should include a PDF file rather than pasting the invoice into the email. It will allow your client to easily save and view the invoice.
- Make Things Easy for Clients: If you want your clients to clear their overdue invoices, you will need to make things easy for them. This is possible when you provide them with convenient payment options and speak to them to create a mutually agreed-upon payment schedule.
Select the Best Debt Collector Singapore
For the best debt management Singapore, you need to consider hiring Lee Tan & Partners. We specialize in debt collection Singapore and are always ready to provide a personalized solution to help boost collections. Feel free to reach out to us to learn more about what we can do for you.
