Give the customer an option to contact you in case there’s an issue on their end. And a standard letter can help cut down on the administrative tasks involved in the collections process. They’ll be less likely to take a standardized letter personally. It’s a good idea to create a standard nonpayment form or email template that you can send customers when these situations arise. When following up on missed payments, make sure your message is polite and courteous but firm and resolute. Every day that goes by is more than just missed cash flow. Don’t assume your customer will get around to paying you based on previous communication. But you’ll need to send a follow-up email once a customer misses a payment. Ideally, they should have received communication reminding them of their upcoming due date. So the first step to collecting an overdue payment is to reach out with a friendly reminder. They might have had a moment of forgetfulness or misplaced their bill. It’s important to remember that your customers are human, too. Plus, learn how to handle your accounts receivable, so you can better manage cash flow and keep your business in the black. If you’re not sure how to ask customers to settle an invoice professionally, use this guide to learn how to collect outstanding payments. To avoid adding to the statistic, those with delinquent accounts must know that you’re serious. It’s crucial that your customers make timely payments, but what happens when they don’t? If you value their business, you’ll need to be cautious and ensure your attempt to collect payment doesn’t come off aggressive.Ģ020 has seen a 32% increase in the number of businesses that could not pay suppliers due to customers’ late payments, says a recent Atradius survey. If you don’t have the funds to satisfy your obligations, you risk expensive late fees, compounding interest, labor lawsuits, and a tarnished reputation. You must pay lenders and employees on time. In fact, 82% of small businesses fail due to mismanaged cash flow.īusinesses need a steady stream of income, and when customers are late on invoices, it can throw a major wrench into operations. Late payments are more than just frustrating-they can damage a small business.
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